What happens to my FSA if I leave a job?

Hey everyone,

I need some advice, I left my job for a promotion at another company. I have never switched jobs before so those 2 weeks flew by and I didn’t really know what I was doing. My final day at my previous employer was 7-24-19. I recieved a letter in the mail today that I was no longer eligible to use my FSA. Is that money that I literally just lose, any suggestions on what I can possibly do to utilize that money at this point? I hadn’t realized the FSA was different than my HSA (which if I understand correctly that is mine to keep no matter what). This is all so confusing, anyone with any advice would be highly appreciated, thank you in advance!

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I don’t know much about this topic but I did find this article online that does a good job of explaining things.


Basically, in most cases the money in your FSA goes back to your previous employer and can’t be used after you have left your job.

The only chance it looks like that you would be able to use it still is if “you are eligible for and choose COBRA continuation coverage” according to the article.

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Yes, if you don’t use them you will end up losing the money in there. You can use the money towards the medical items. You can also go to FSAstore.com. They also have the Eligibility List. It’s the Information of the list of items you can buy with your FSA money. Hope this helps you out.


Flex savings accounts are use or lose. I believe I had until the end of the month in which I left to use my balance. So you may want to contact your former HR department or log into your account online to see if you still have access to the money and until when.

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I agree with one of the other members. I would suggest you contact your old HR Department. Also, check with your health insurance and see if you have any outstanding bills that were created before leaving the old job, maybe the FSA can cover it. Unfortunately, FSA are use or lose, you have to spend it all before leaving the job. An HSA is yours even when you leave a job.


Your HSA goes with you when you leave your job. I have an account and use it now in semi-retirement, and am so grateful that I have it as I had surgery in May and still suffering complications. It really helps with extras that Medicare and my Medicare Supplemental Plan won’t cover.

For example, I was recently diagnosed with lympomedia (sp) as a result of the surgery, and I use the account to buy things the physical therapist requested such as leggings for circulation, special lotions and creams, shoes, etc. I also use if I just want to try something other than what insurance will cover.

All of these extras can be written off at tax time, so not only are you saving by having your HSA non-taxable during the year but you save at tax time. You can continue to make contributions as well as I’ve been doing. You can also invest with HSAs. Getting an HSA while I was fully employed was one of the best things I’ve done.

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One of the other members makes a good point, and I agree with them. I think you should get in touch with your previous employer’s HR department. Whether you still have medical expenses from before you quit your previous work, contact your insurance company to see if the FSA would help pay them. drift hunters

Any funds left in an FSA account after a person quits their job are forfeited to the employer. To spend FSA funds, however, there are a variety of purchases that can be made. To give yourself more time to use up the remaining FSA funds, it may also be possible, depending on the circumstances, to extend the FSA with COBRA (contributions will then be made on an after-tax basis). more: slope unblocked

However, if a person has already used up all of their FSA funds for the year, they are still free to quit their job without funding the FSA in full. In that situation, there is no need to pay back the FSA funds.