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September 10, 2007

Question:

Ken needs $3,600 in orthodontia starting in February 2009 and lasting for 18 months. His dental plan excludes orthodontia for individuals 18 and over. He elects $4,000 in his Health FSA.

Under the Proposed Cafeteria Plan Regulations, issued in August 2007, when may Ken be reimbursed by his Health FSA?

• monthly installments of $200
• $3,600 upon payment, if the plan allows
• All $3,600 once he has made payments
• $2,200 in 2009, $1,400 in 2010