If anyone can help me with this it would be great!! If an employee is enrolled in the Health FSA and terminates mid-year, if they take the remainder left to deduct for their account out of their final paychecks, can they submit expenses incurred after their termination date?

Also, can anyone point me to a good reference for a COBRA letter for health FSA's?

Thanks!!

If a deduction is taken from the last paycheck to cover the remaining FSA deductions for the rest of the plan year (per the employee’s request, and following the guidelines in that particular SPD), then FSA claims can be paid for dates of service after the term date, and up to the end of the plan year.

As for a sample COBRA offer, here is one which includes mention of FSA’s:

http://www.k-b-s.com/pdfdocs/COBRAKIT02%20.pdf

There are lots of samples on the internet.