Documentation for Pending FSA Transactions

When using the benefits card to access Flexible Spending Account (FSA) funds, you may receive an email request from Rocky Mountain Reserve asking for documentation to substantiate the charge. Submitting this documentation is an IRS requirement for everyone who uses an FSA. Please respond promptly to these requests to ensure your FSA account does not get restricted.

Why is Rocky Mountain Reserve requesting documentation for FSA charges?

When congress established Flexible Spending Accounts (FSA) they allowed medical expenses to be paid pre-tax but put several conditions in place. One of the conditions the IRS imposed was that every expense from an FSA must be substantiated by a third-party.

Most of the time, RMR can automatically substantiate debit card transactions using information we receive at the time of the card swipe but there are some situations when we cannot. If we cannot we are still required to collect proof the expense is eligible from the participant. These emails are RMR's request that you need to provide proof that the transaction was for eligible expenses or items.

 

What documents will satisfy the IRS requirements?

An itemized receipt or an itemized bill usually constitutes sufficient documentation. Make sure that the documentation you submit has the following pieces of information:

1. The date(s) of service, or the date of purchase if the receipt is for an item
2. The amount charged
3. A description of the service(s) provided or of the item(s) purchased

 

What happens if I do not submit the requested documentation?

Submitting the documentation is a requirement for an employee to participate in an FSA and for an employer to offer an FSA. When documentation is requested a participant has two options, they can either: (1) submit a receipt with the required information or (2) repay the funds from the card transaction back to their FSA. If a receipt is not submitted or funds are not repaid the employer is required by the IRS to take steps to recover the funds which could include; suspending the debit card, withholding payments from future claims, or withholding funds from an employees paycheck.

How do I submit documentation?

There are two ways to submit documentation once RMR has requested it:

1. The simplest way is to login to the portal and upload the documentation.
2. Alternatively, you can email or fax supporting documentation to RMR ([e-mail])

How to upload documentation in the portal

1. Log in to RMR's new online web portal.
2. Select Expense Details on the left sidebar.
3. In the list of all expenses, use the filters to look for the Status: Needs help or Pending.
   
   
4. Open the expense and attach an itemized receipt or document to the expense.
   
   
5. Once the documentation is uploaded, the status will update to Processing until the documentation can be reviewed and approved.