What happens to HSA, FSA and stock options when laid off?
Seeking information from the legally knowledgeable on blind! In a typical tech company, suppose you get laid off, fired, or resign. (I realize the answer may depend on which one of these scenarios it is.) What happens to these? 1. Money in a health spending account tied to the company? (HSA) 2. Money in a flexible spending account tied to the company? (FSA) 3. Early vested stock options, which the company will have the right to buy back at the strike price. How soon is the transaction executed? 4. (Supposing you have been with the company two years, and there's monthly vesting periods.) If you leave in between a paycheck and vesting period, i.e. first week of a month, but you indicated to HR that you are willing to work until the end of the month, what happens to that final month/week's pay and vesting?
Once you leave you start paying higher maintenance fees in your HSA right?
That depends on what bank it’s with and the program. Mine is with elements financial and I pay nothing for it. I had one with chase that wanted $5 a month, did an immediate trustee to trustee transfer on that one.
Yes if you continue with the same bank. I moved my HSA to Lively HSA after wasting a few years on fees. No monthly or annual fees on it!!! (Did a trustee to trustee transfer, in which you don’t get the check from the bank to deposit. It’s done between my previous HSA bank and Lively). Their support is good and has worked fine enough for me. The only catch is for signing up with TD Ameritrade, which can be done only if you are in valid visa, PR or citizen. Now that I’m not a resident of US, I cannot sign up for one. If you plan to end your work and move out of US, setup trading account before leaving company. (Being able time trade makes a huge difference in how your HSA balance grows (or not))
HSA is your own "bank" account, it goes with you. FSA - You lose it unless you elect for cobra. Use all of your FSA before you resign. If you switch jobs, you can double dip on FSA. Options - generally the execution period is 90 days. Should be the same for early exercise. Most companies will buy back early exercise options, but sometimes they might now (very unlikely) Vesting is based on date, no 1/2 vesting etc. You get paid until your last day of work, it's prorated. Willing to work has nothing to do with paycheck, all depends on if HR wants to keep you around for 3 more weeks or not, depending on your standing.
What do you mean by double dip on FSA? I can only spend as much as there is in it. Re: the options, does that mean the company has 90 days to buy them back? What happens if they don't?
As for the FSA in all jobs I’ve left I can still submit expenses that occurred during the period I was employed by the company up to the disqualification date which happens the following year. It’s just a clarification, so you need to have qualifying expenses but they don’t need to be turned in immediately. Maybe this varies by state.