What is the grace period extension?
The University has adopted the IRS “grace period extension” by permitting employers to modify Flexible Spending Accounts (FSAs), extending the deadline for reimbursement of health and dependent care expenses. This means employees who have unused balances in their accounts at the end of the year have until March 15 of the following year to incur eligible expenses for medical, dental or child care services. Those expenses must be submitted no later than April 30 to avoid forfeiting the unused balances. The grace period extension applies only to those who are employed at Yale as of December 31 of the current year.
