Thank you, could you please elaborate on this? Not a dependent under a plan. Is it pretty much a given that this would be detected as not my transaction and if so, what kind of penalty could there be?
Most plans will ask for documentation on the purchase to validate that they are qualified because they want to make sure their plan remains in good standing and qualified.
So there is a pretty good chance that it is caught, unless you plan on outright lying to them. Then that's entirely different ballgame...
No, this not what I want to do. In the past, when I used the card at a dental office I just swipped it, it was approved and that was it. I was using my own FSA or HSA funds and not insurance. I was interested in knowing if following up was a thing.
I understand, thank you for the response. Are you bading on direct knowledge? I am wondering about what kind of processing happens at the time of the swipe and what could happen other than denial. What could a punishment be.
What happens other than denial of the purchase is the vendor asking you for some money out of some other pocket of your money to pay its charges and you not being able to come up with a substantive enough reimbursement request to the scheme operator to give you back your money from "FSA."
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UGA10 t1_jegd5g0 wrote
Unless they are a dependent under your plan, it would be a non-qualified distribution and would come with taxes and penalties.