The Flexible Benefits law from the IRS states that the survivor of the member must make the attempt to reimburse the funds with claims of eligible expenses. Any contributions made after the member died would need to be refunded directly to the survivor via the member’s estate, while funds deposited before the member died would need to be claimed with eligible expenses. This could work in the event of the member requiring a hospital visit, ambulance ride, emergency assistance, etc. This is the process to have these funds reimbursed, and the IRS won’t allow exceptions.
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