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12 lis 2024 · In a flexible savings account, the grace period is an extended coverage period at the end of the plan year, while a run-out period is time in the new plan year.
Health FSA—grace period. Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior year plan is zero. See Flexible Spending Arrangements (FSAs), later.
Many FSA plans offer a grace period and/or a run-out period that ends in March. So, what's the difference between the two? If your FSA plan has a grace period, you have up to two-and-a-half months at the end of your plan year to spend unused FSA funds and incur new FSA eligible expenses.
11 cze 2024 · Under the Consolidated Appropriations Act, 2021 (CAA), employers could extend FSA grace periods for the 2021 year out to December 2022. In 2023, the grace period will revert to 2.5 months.
28 sie 2024 · The run-out period is a specific time frame after the end of the plan year in which FSA participants can submit claims for eligible expenses incurred during the plan year. Unlike a grace period, a run-out period does not allow for new expenses to be incurred during that period of time.
16 lip 2021 · Below is a broad overview of these three concepts followed by important best practices. A Runout Period is an administrative period of time following the end of the plan year that allows the participant extra time to submit claims for eligible expenses incurred during the plan year.
23 paź 2024 · Be warned, you must use your FSA funds by the end of each plan year. That is, unless your plan has an FSA rollover or grace period. The Internal Revenue Service (IRS) allows employers to opt-in to one of these options. Both options can help their workers who have an end-of-year balance.
