What is a grace period?
FSAs and DCFSAs are usually "use it or lose it", and at the end of the plan year, you forfeit any remaining money.
However, if your employer offers a grace period, you have additional time to submit new claims and swipe your benefits card from the current year while paying with the previous year's funds.
How do I know if I have a grace period?
If you have a grace period, your FSA, DCFSA, or LPFSA dashboard will have a coverage date that extends past the calendar year.
How do I use my expired balance during the grace period?
You have two options to use the funds from the previous plan year during the grace period:
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File a claim for reimbursement. As long as you're filing a claim during the grace period, you'll be able to select your previous year's FSA in the claim submission form.
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Use your Pre-tax Forma Card. If you have remaining FSA funds from the previous plan year and you use your card for eligible expenses, the transaction will use your previous years' balance automatically.
Example
Let’s say your FSA has a 2.5 month grace period. On Jan 1, 2023, your $500 balance from the 2022 plan year expires. Now, your $3,050 contribution for the 2023 plan year also becomes available.
On March 1, 2023, you filed a claim for a $500 expense incurred in 2023. Because March 1 is within your grace period, you'll be able to select your 2022 FSA when filing the claim and use the remaining $500 from the previous year's FSA.
Important: If you select your 2023 FSA in the claim submission form, the claim will be deducted from your $3,050 balance instead. If that happens, we can't reverse it.
Questions?
Feel free to reach out to the Forma Support Team via live chat or at support@joinforma.com. You can also reach us by phone at 844-902-2902 on Monday through Friday, 8 AM EST - 8 PM EST.