My son went to the dentist on 9/22/2014. After the insurance paid a portion of the $125 fee, I was billed $53.60 on 2/25/2015. I submitted my FSA card to cover the balance on 3/12/2015.

When the administrator came to me for the documentation, I submitted the invoice from 2/22/2015. They refused this, saying that I paid for a 2014 service with 2015 funds. I called and noted that I only received the bill in 2015, but they still denied the receipt.

Are they right? I think they are wrong, but I cannot get them to accept the receipt.


They are right. You can only use the FSA funds for the year in which you accrued the liability, regardless of when you paid it. See the IRS publication 969:

Generally, distributions from a health FSA must be paid only to reimburse you for qualified medical expenses you incurred during the period of coverage.

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  • +1 - this is also why you have a grace period to submit, usually till March 31 of the next year. His 2014 FSA would have covered this. – JTP - Apologise to Monica Nov 19 '15 at 2:04

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