A health care flexible spending account terminates as of the date of your separation. You will not receive the balance in your account as a refund. Any health care expenses incurred prior to the date of separation will still be reimbursable but those incurred after the date of separation will not, even if there is still money in your account.
A dependent care account balance at the time of separation will still be available to you for any eligible expenses incurred within the plan year.
If you separate and return to work for the government, an FSA can be reinstated. As long as you return to work for a participating federal agency within 60 days and before the end of the same tax calendar year, your previous election will be reinstated. You will not be permitted to change the amount of your allotment. If you return in another plan year, you will be given an opportunity to make a new election. If there has been a “qualified status change” within the 60 days, you may modify your election.