Does the Flexible Spending Account(s) (FSA) have a beneficiary designation form in case of an employee’s death? What happens to the contributions left in the account in the event of the employee’s death?

The Health Savings Account (HSA) has a beneficiary designation form but there is no beneficiary form for the FSA – this differs from HSA as the HSA is a personal bank account.

For FSA, the member has the account through their employer.  If an FSA member passes away, the account is terminated on that date.

An executor to the employee could submit expenses on his behalf for those incurred prior to death, and all expenses must be claimed within 90 days from the date of the flex plan termination or the funds in the account will be forfeited per plan rules.

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