Does the use-it-or-lose-it rule apply with the grace period?
• Yes. Once the grace period ends, any remaining balance from the prior year is no longer available. However, the grace period does help you avoid forfeiting your money by allowing active participants 2½ months longer to incur eligible expenses. For example, for a calendar plan year with a 90-day Run Out and the grace period, if you are an active participant as of December 31, 2008, you have until March 15, 2009 to incur eligible expenses and until March 31, 2009 to submit a claim form for those eligible expenses and all corresponding documentation for reimbursement. After March 31, 2009, any remaining account balance is forfeited.
