What is FSA Grace Period?
FSA Grace Period or FSA Extension is a new guideline issued by the IRS that allows employers to offer members a grace period of up to 2 months and 15 days after the end of the plan year. During the grace period, employees can accrue eligible expenses to submit against the previous plan year. For example, if an employer offers a calendar-year FSA plan (i.e. plan year is 1/1 through 12/31) with a 2 month and 15 day grace period, members have through March 15, of the following year to incur eligible expenses for reimbursement from their current year funds.
