Clearing out Flexible Spending Liablity Account

[ewinzer]

I have a credit balance in our flexible spending liability account from 2012. I need to clear out this account for 2013. Does anyone have a straight forward way to zero this account out?

Thanks!
Erica

[JohnDMeyers]

It depends on what that money represents.

Who do you borrow the money from?

Do you *really* owe someone that money? or is it a loan to yourself?

[ewinzer]

Participating employees had a certain amount of pretax money withheld each month for Medical Flexible Spending. Legally they don't get this money back and it is forfeited to the employer (the church) so I just need a transaction to move the money from the liability account to our general fund.

[JohnDMeyers]

It probably should not have been put into a liability account, unless you have a negative balance in your liability account. It should have been put into an asset account.

Whatever account it is in, you should now move it into an income account.

It becomes income for the church.

So the transaction will be:
DB 01-xxxx-000 whereever the money is now
CR 01-4180-000 surrendered money from health savings