Flex Spending Grace Period
FSA GRACE PERIOD
Pace University has implemented a 2½ month grace period to allow participants who enroll in the HealthCare Flexible Spending Program for the July 1, 2014 - June 30, 2015 plan year to incur eligible expenses following the end of the plan year (i.e., June 30, 2015). This means that participants may continue to incur eligible expenses through September 15, 2015. All reimbursements must be submitted by September 30, 2015.
John Smith has $100 remaining in his health care FSA as of June 30, 2015. He incurs $120 expense for medical procedures on August 12, 2015.
Prior to the Grace Period: John would have forfeited the $100.
Implementation of Grace Period through September 15, 2015: John can submit a claim for the $100 which will be reimbursed vs. his $100 remaining account balance for the current plan year, ending on June 30, 2015 and apply the $20 toward the new 2015-2016 balance (as he had re-enrolled in the FSA during the annual Open Enrollment period).