Flexible Spending Account - Grace Period
These provisions apply beginning with the June 1, 2014 to May 31, 2015 benefit plan year. If you have a balance in your Health Care Flexible Spending Account (HCFSA) and/or Dependent Care Flexible Spending Account (DCFSA) at the end of the current benefit plan year (May 31) you have an additional 2½-month “Grace Period” to incur eligible expenses. This means that you have until August 15 to use any HCFSA and/or DCFSA balance remaining in your account as of May 31.
This Grace Period does not eliminate the “Use It or Lose It” rule. You must use any balance remaining in your HCFSA and/or DCFSA account as of May 31 no later than August 15. Otherwise, any remaining HCFSA and/or DCFSA balance after August 15 will be forfeited.
If you use the flexible spending account debit card after May 31 and before August 15 of the following benefit plan year, and there is a remaining HCFSA and/or DCFSA balance for the previous benefit plan year, reimbursement will be applied to the previous benefit plan year before expenses for the current benefit plan year.
HCFSA and DCFSA claims can be submitted through September 30 for the previous benefit plan year.
By law, exceptions to these deadlines are not permitted.