Probably a dumb question, but this is the first I have heard of this...
Client is retiring and will go on COBRA for the remainder of the year. He elected to participate in the employer's FSA at the beginning of the year and is being given the opportunity to continue contributing to the FSA on an after-tax basis.
I do not see any advantage to putting after-tax money into a use-it-or-lose it account. Is there something I am missing?
Will he lose his existing FSA balance if he does not continue to participate?
Bonus question being asked by the devil on my shoulder: Can he submit expenses now for the entire annual contribution and stop participating in the FSA for the rest of the year?