What happens to funds in an account that are left and no claim for reimbursement is submitted?
Eligible claims for expenses incurred during the plan year, or the 2 1/2 month grace period immediately following the plan year end, must be received in the SISC office within 90 days after the end of the plan year. SISC will send out reminder notices to participants to notify them of a remaining account balance. Participants can also access their account balance anytime through the SISC FLEX web site. The IRS has imposed strict regulations for the use of forfeited money. Generally, the funds are used to defray the employers costs for administering the plan. Any funds left in the account, unclaimed, will be forfeited to SISC. This will help offset the risk SISC assumes when paying a claim that is not covered by sufficient funds in the account (due to employee termination, etc.). Unclaimed fund balances will also help offset administrative expenses to allow SISC to continue to offer this plan as a free service to districts and employees.
Related Questions
- I am currently enrolled in a Flex Medical Reimbursement Account and/or Daycare Reimbursement Account. What happens to my money that is left in the plan when I leave UTMB?
- What happens to funds contributed to a reimbursement account if an employee terminates employment?
- What happens to funds in an account that are left and no claim for reimbursement is submitted?
