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Participation next year depends on when you retire during the year. By IRS law, annuitants cannot participate in flexible spending accounts. FSAs are a salary benefit and an annuity is not salary. You can enroll for next year and participate in FSAFEDS until the date of your retirement. Carefully calculate your anticipated eligible expenses up to that date, because you will not be able to file claims for expenses you incur after your retirement date. If you retire January 1st of next year then you cannot enroll in FSAFEDS.
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