FSA “Use It or Lose It” Reminders

Posted in Announcements News  |  Tagged FSA

The deadline for submitting claims against 2023 Flexible Spending Account balances is April 30, 2024. You may submit for reimbursement for those eligible expenses that were incurred between January 1, 2023 and March 15, 2024.

The Internal Revenue Service has strict rules about flexible spending accounts. You must use the money you have paid into these accounts for expenses you have incurred during the same calendar year or within the grace period for that year. Any money remaining unclaimed at the end of the grace period will be forfeited and is lost to you. This means you must carefully estimate the eligible out-of-pocket health and dependent care expenses you expect to incur.

The grace period for any Plan Year (calendar year) is January 1 through March 15 of the following calendar year*. If you have unused contributions in your account by the end of the Plan Year, and you incur expenses during the grace period, you can file a claim and be reimbursed with contributions from the prior year. The deadline for filing such claims (i.e., expense incurred during grace period, reimbursement from prior year’s account) is the April 30 following the grace period. Example: You made a $1000 Health Care FSA election for 2023, but only spent $600 by December 31, 2023. You would be able to use the remaining $400 for services incurred from January 1 – March 15, 2024. Claims for those services must be submitted by April 30, 2024.

Learn more on the Flexible Spending Account webpage.