Does the use-it-or-lose-it Rule still 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 period and the grace period, if you are an active participant as of August 31, 2009, you have until November 15, 2009 to incur eligible expenses and until November 30, 2009 to submit a claim form for those eligible expenses and all corresponding documentation for reimbursement. After November 30, 2009, any remaining account balance is forfeited.
