Terminiation of Employment
Medical Care Account
If your employment terminates before the end of a calendar year and there are funds remaining in your Medical Care Account, you may take one of the following actions.
- Choose not to continue coverage. In this case, you have until the end of the month of your termination to incur eligible expenses.
- Request remaining plan year contributions be reduced from your final paycheck on a pre-tax basis. In this case, you have until the end of the calendar year to incur eligible expenses.
- Elect COBRA continuation and pay the remaining plan year contributions with after-tax dollars. However, if your account has a negative balance at the time of termination, COBRA will not be offered. If you elect COBRA, you have until the end of the Plan Year to incur eligible expenses.
Dependent Care Account
Your participation in the Dependent Care Spending Account ends the date of your termination of employment. Additional contributions to the Dependent Care Accounts after employment terminates are not allowed. Dependent Care expenses can continue to be incurred during the Plan Year.