When Is the Best Time To Get Reimbursed From Your Flexible Spending Account?

FSA reimbursement eligibility occurs on day 1 of your employment.  If you have been reimbursed more than you have contributed, you do not have to repay the funds when you leave as long as the funds were used on eligible expenses.

Example: Fred elects to contribute $600 to his FSA this year ($50 per month). In January Fred buys glasses for $500 and receives a reimbursement from his FSA. Fred leaves in early March when his employer had only deducted $100 in FSA contributions. Fred is not responsible for repaying the $400 excess from the FSA.

 TIP So from a financial perspective, it’s best to use at much of your FSA early in the January as you do not have to repay excess FSA funds if you later leave during the year.