The use it or lose it rule applies. You may enroll in either one or both of these accounts, but you must re-enroll each Option Period or you lose the tax break. According to IRS rules, any funds unused in your account at the end of the Plan Year will be forfeited. Medical care must be provided prior to June 30, 2001. If the services or items are covered or denied by an insurance carrier, EBC must have the Explanation of Benefits from the Insurance carrier prior to reimbursement.
Qualified reimbursements are paid within ten days of date claim is received by the claims office.
For further information on allowable expenses, review section 213 of the Internal Revenue Code. It is worded for the general tax payer.