FSA Beneficiary

 

Question:

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?

 

Answer:

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

·         For FSA, the member owns 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.

 

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