(January 1, 2021 – December 31, 2021)
Pace University has implemented a 2½ month grace period to allow participants who enroll in the HealthCare Flexible Spending Program for the January 1, 2021 through December 31, 2021 plan year to incur eligible expenses following the end of the plan year (December 31st). This means that participants may continue to incur eligible expenses through March 15, 2022. All reimbursements must be submitted by March 31, 2022.
John Smith has $100 remaining in his health care FSA as of December 31, 2021. He incurs $120 expense for medical procedures on January 12, 2022.
Without the Grace Period: John would have forfeited the $100.
Existence of Grace Period through March 15, 2022: John can submit a claim for the $100 which will be reimbursed vs. his $100 remaining account balance for the 2021 plan year, ending on December 31, 2021 and apply the $20 toward the new 2022 balance (assuming that he re-enrolled in the FSA during the 2022 annual Open Enrollment period).