What is a run-out period?
Your pre-tax contribution expires at the end of the plan year. Theoretically, you'll no longer be able to submit claims with those funds after they expire.
Nevertheless, if your employer offers a run-out period, it gives you an extended period to submit claims for expenses incurred during the previous year with those expiring funds.
To check the runout period policy your employer provides, please go to the member portal and check the account page for more information.
Example
Let’s say your employer offers a 75-day run-out period for your FSA. On 1/1/2023, your $500 account balance from 2022 expired. This $500 will become so-called “run-out funds”.
On 1/20/2023 (or any day prior to 3/16), you filed a claim for a $400 expense incurred in 2022. When the claim gets approved, it will apply to your run-out funds instead of your funds from 2023.
How to submit a run-out claim?
Submitting a run-out claim is very similar to submitting a normal claim. You will fill out the claim submission form on the portal or the app. When you select the account from the previous year. The amount of the run-our funds will also be displayed in the account name.
Questions?
Feel free to reach out to Forma's Customer 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.