Medical Expense Flexible Spending Account

GLC

We have an employee who turned in several hundred dollars for medical expenses that he paid for his son who is 25 years old, married and does not live with the employee. The son was diagnosed with cancer last year and the employee was helping his son out with the enormous expenses. Can an employee turn in receipts for a dependent at that age? What is the age limit? This is in Kentucky.

Don D

We don't have the cafeteria program or any of its components here; but, in a past life, I did. My memory is that the expenses still have to meet the eligibility definitions imposed by your group policy and I don't think this would be an eligible expense under your plan. The expense would have to meet IRS regs of eligible dependent too.

Lori B

How does your flex plan document define "dependent"? Did the employee list this person as a dependent on their enrollment form? These are your starting points.

WOCO Frank

Regardless of the state you're in, these expenses have to meet IRS guidelines (presuming it is a Sec. 125 plan). If the son is not a legal dependent as defined by the IRS, it's going to be tough.

NaeNae55

IRS Publication 502 is very helpful in determining who is eligible. The IRS appears to treat medical expenses differently than exemptions when it comes to dependents. However, the plan document may be less generous than the IRS. Also, if your employee did not list his son as a dependent on his enrollment form the son's expenses cannot be covered.

Carol CA

Although I sympathise with the employee and understand how he wants to help his son, I don't believe the expenses would be compensable under the Flexible Spending Account. It appears the son is over age, not a dependent, not a full time student, not living at home, and married. Sorry!