Thread regarding AT&T layoffs

Deducting FSA from Severance Payments

Q quick question - is it OK for the employer to take a deduction for a Flexible Spending Account (FSA) in my severance pay amount?

Severance pay was contingent upon my agreeing to a number of papers, therefore, was not paid until more than a month after my final date of employment.

It seems that since I was no longer an employee at that time when this took place, the deduction should not have been taken at all.

I cannot claim any expenses occurring after my last date of employment for FSA coverage, so any deductions that taken after that date cannot possibly provide any benefit to myself.

My requests for review the issue and remedy things are unanswered.

Thoughts?

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| 3166 views | | 1 reply (June 23, 2017) | Reply
Post ID: @OP+NUxZXvP

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From my experience/knowledge, the FSA is use it or lose it. It is money 'fronted' to you, with the expectation you will earn enough to cover it over the course of the year. Sort of like a loan and completely different than the HSA.

For example:

If you elected $3000 for your 2017 FSA, then January 1st, there would be $3000 in your account. They would begin to take $$ out of your paycheck to cover it.

Scenario 1: You used all $3000 in January and then quit or lost your job in February. Nothing would happen. They would let you go and not mention it.

Scenario 2: You lost your job in February with $2000 still left in the FSA. Since you did not actually EARN that money yet to cover it, they empty the account- you lose it.

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Post ID: @1ekn+NUxZXvP

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