Applying FSA to COBRA?

Question:

We have a health flexible spending arrangement (FSA) where the employer contributes $1,000 per calendar year. One of our employees elected a salary reduction with respect to the health FSA of $2,000 for the year at the start of the year.

This contribution was made by a monthly salary reduction. The employee terminated their employment May 31. They had a $500 carryover amount in their FSA from the previous year. Up to May 31, the employee had submitted medical reimbursement payments of $1,100.

How much can they use of their remaining FSA for COBRA?

Answer:


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