Most healthcare flexible spending accounts (FSA) provide a period of time after the end of the plan year, known as the “run-out period,” during which claims incurred prior to the end of the plan year (or prior to the end of the grace period, if applicable) can be submitted. The run-out period simply provides additional time to submit already-incurred claims. Because run-out periods vary for every employer, please check your Summary Plan Description for details.
The grace period allows participants to access unused amounts after the end of a plan year to pay or reimburse expenses for qualified benefits incurred during a “grace period” of up to 2.5 months after the close of the plan year. Because grace periods are optional, please check your Summary Plan Description for details.