What happens to funds contributed to a reimbursement account if an employee terminates employment?
In the event of a termination, an employee who participates in the Cafeteria Plan reimbursement accounts can file for reimbursement of expenses up through the date of termination. Any remaining funds would be forfeited. At the discretion of the employer, the plan can be designed to make these funds available by allowing the terminated employee to stay in the plan for the remainder of the plan year, and continue to file for reimbursement. However, this would require continued contributions to the plan for the remainder of the year by check.
Related Questions
- Is an employee who resigns or otherwise terminates their employment with the State of Connecticut eligible for Tuition Reimbursement Program benefits?
- What happens to an employees medical expense reimbursement account when employment is terminated?
- What happens to an employees dependent care reimbursement account when employment is terminated?
