If an employee dies, what happens to his or her flexible spending account contributions?

The flexible benefits law from the IRS states that the survivor of the member must make the attempt to file claims against the remaining fund balance for dates of service from January 1st of the current plan year until the employee’s termination date. Any contributions made after the member died would need to be refunded directly to the survivor by 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.

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