Rollovers, Grace Periods, and Run-Out Dates

If you currently have an FSA, LPF, DCA, or HRA you may have heard about rollovers, grace periods, and run-out dates. Each benefit account may or may not have a rollover or a grace period, while all will have a run-out date. 

Rollover: This account setting applies to FSA, LPF, and HRA accounts. Not all accounts have this setting. A rollover allows up to $640 (for plan years beginning in 2024) of unused dollars to roll over to the next plan year. This allows participants to submit claims for reimbursement for any expenses incurred in the previous plan year in addition to allowing the funds to be used for the current plan year. 

For further information, please refer to the FSA Rollover FAQ article.

Grace Period: This setting applies to FSA, LPF, DCA, and HRA. Again, not all accounts will have this setting. A grace period acts like an extension of the plan year. The last day of a plan year is the last day participants have to incur expenses or use their funds. A grace period extends until the last day of the plan year. For example, if your plan year ends on 12/31, a grace period until 3/15 would allow you to incur expenses for two and a half months after the plan year has ended. Like a rollover, it's a useful option to avoid the IRS's use-it-or-lose-it rule.

Run-Out Date: All FSA, LPF, DCA, and HRA accounts will have a run-out date. The run-out date is the last day to submit any claims for reimbursement from the previous plan year. The last day of the plan year is still the last day to incur expenses, but the run-out date allows you to be reimbursed for anything you may have paid out-of-pocket during the year. The length of time after the plan ends till the run-out date varies from employer to employer. It's a great option that gives participants extra time to claim reimbursement.

If you have a question about your account, contact our customer services department by email at [e-mail] or by phone at 888-722-1223;  they will provide you with your unique account settings.