Leaving the U and Your FSA

If you take a leave of absence during the year or leave your job at the University, it will affect how you use yourr FSA. That’s because contributions end with your last paycheck.

Change Due to Leave of Absence

Health Care FSA

Any expenses with dates of service after the last contribution from your paycheck are not eligible for reimbursement.

Dependent Daycare FSA

You can use money remaining in your account for work-related dependent daycare expenses through the end of the year.

Return to Work Before End of the Calendar Year

If you return to work before the end of the year, payroll deductions will start again with the first full pay period after you return. To make sure that you get all of your FSA contributions made by the end of the year, the Payroll Department does this:

  • They look at your annual election amount and subtract your year-to-date contributions, and
  • The difference is deducted in equal amounts from your remaining pay checks for the year.
For Example:

Annual Election Amount = $1,300
$1,300 ÷ 26 biweekly pay periods = $50 each pay period

Contributions taken before Leave started on March 15:
7 year-to-date contributions = $350

Difference between annual election and year-to-date contributions upon return to work on June 15: $1,300 - $350 = $950
$950 ÷ 13 remaining biweekly pay periods = $73.08 each pay period

 

Change Due to Termination, Retirement, or Layoff

Health Care FSA

Your FSA stops with the last contribution from your last paycheck. If you still have money in your FSA, and you don’t have eligible expenses before termination to use up the balance, you have two options to avoid losing the money:  

  • You can request to have the remaining amount for the year taken on a pre-tax basis from your last paycheck as long as the amount is less than your gross pay. Doing that means you can continue to submit claims for expenses through the end of the year. Contact Employee Benefits at 4-UOHR (612-624-8647 or 1-800-756-2363) and select option 1 or email benefits@umn.edu at least two weeks before the date of your last paycheck to arrange this.
  • You can continue participating through COBRA on an after-tax basis. You won’t have the tax savings, but you can continue to submit claims for expenses you have through the end of the year. Contact Employee Benefits within 60 days to select the after-tax COBRA option.

Dependent Daycare FSA

When your University job ends, your contributions end with your last paycheck. But if you still have money in your FSA, you can continue to submit claims through the end of the year for daycare expenses if you’re looking for work or you have a new job.