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Deductions & credits
Correct. If you are can spend all the money already deposited in the FSA before the effective date of the termination, no reason to continue FSA under COBRA from my perspective. There's no harm done in continuing if 1) you believe you can spend the annual amount elected on FSA-qualified expenses (no forfeiture) and 2) you can afford to continue making the FSA deposits - it doesn't create a temporary cash flow problem for you.
March 12, 2020
3:21 PM