What is a run-out period?
FSA money usually expires at the end of the plan year, so you lose any remaining money you didn’t spend. However, some employers offer a “run-out period” to help you not forfeit any money.
A run-out period is extra time after the coverage period ends to file claims for expenses incurred during the coverage dates. An important detail is that although the run-out period gives you more time to file claims, the expenses must be incurred during the coverage period.
Please note that you cannot use your Pre-tax Forma Card to access run-out period funds.
To see if your employer offers a run-out period, go to your FSA from your Forma account and check what the last day is to submit claims. If the last day to submit claims is later than the end of the coverage dates, that’s a run-out period.
Let’s say your employer offers a 90-day run-out period for your 2023 FSA. On January 1 2024, your 2023 balance from the previous year expires.
But because you have a 90-day run-out period, you could still file a claim on January 20, 2024 for a doctor’s visit you had in 2023. Once it’s approved, you’ll be reimbursed from your 2023 balance.
How do I file a claim during the run-out period?
Filing a claim during a run-out period is the same process as filing a claim normally. Just make sure that you use the drop-down to select the correct account—you’ll be able to choose either the previous FSA plan year, or the current one. If it’s within the run-out period, select the previous plan year to use the rest of that money.