The “rules” of a flexible spending account are often confused with those of your regular state and federal income tax. Here are some of the differences:
Services must be incurred in the plan year to be reimbursable
Must be received by the administrator no later than the last day of the run out period
Premiums paid for insurance coverage are not covered under your Health Care Flexible Spending Account
Covered medical expenses are based on IRS code 213d
Services must be paid in the tax year to be deductible
Forms must be postmarked no later than April 15th
Premiums paid for insurance coverage are a deductible expense under taxes
Deductible medical expenses are based on IRS code 502