Can an employee who terminates during the plan year and is later rehired during the same plan year, participate in an FSA (either medical or dependent care) when he returns to employment? Does it matter if he elects to continue his FSA through COBRA after the termination?

If they are eligible, do they have to continue the same amount and what happens if he previously withdrew more than he contributed (as can be the case in a medical FSA)? If not eligible, when would he be eligible to again participate? Our plan year is April-March.

[This message has been edited by scm (edited 10-01-1999).]

Under the new temporary rules, it depends on how long between the termination and rehire, within 30 days the previous elections reinstate and longer than 30 days new elections after any plan dictated waiting period.