I changed my jobs earlier this year. I had enrolled in health and dependent FSA through my previous employer for this year. I just found out that I had only three month grace period to file my claims. The money is now forfeited and is back into "employer's fund".
I should have paid attention to the rules but somehow it feels wrong that the money I set aside for my benefits goes back to employers fund. Anybody else had such experience? Is there anything else that I can do? I wish my previous employer shared these details in my exit interview.
What actually happens is that the forfeited funds are used to offset costs and any excess after all of the costs are taken out is distributed to the remaining participants.