The Jacobs Company
Employee Benefit Plans & Services
    Flexible Spending Accounts
FSAs Which Include Health Benefits

If an FSA provides health benefits (like medical or dental expenses) to participants, it must be ready to pay the full year's benefits to an employee who qualifies for the benefit.

For example, if the employee has contributed for only one or two months at the time of the claim, the employer must pay for the entire expense up to the amount projected for the full year of contributions by the employee.

If the employee then terminates employment before the amounts are deducted from his or her paycheck, the employer must suffer the loss.

Note: These restrictions apply only to medical expense benefits under FSAS.

FSA (Flexible Spending Accounts)
Tax Benefits

Please refer to our Health Insurance Section as we are developing the Employee Benefits Section


This document was last modified on July 26, 1999

Copyright ©1999, The Jacobs Company, All Rights Reserved