In late May, the IRS released guidance on the grace period for 2019 flexible spending accounts, allowing plan sponsors to extend the grace period for 2019 accounts. The normal grace period is two and half months into the next plan year (March 15). Plans have now been given the option to extend that period to the end of the calendar year, Dec. 31, 2020. The university has opted to allow the extension.
Employees who participated in a flexible spending account in 2019 and who did not use all of the funds they contributed can submit a reimbursement for qualifying expenses incurred through Dec. 31, 2020. Please note, to use this extended grace period, you must submit a Reimbursement Request Form or request the reimbursement through your online account at Meritain. Your FSA debit card can only be used to access the funds in your current year (2020) flexible spending account.
As was previously announced in The Daily, participants with health care flexible spending accounts can be reimbursed for purchases of over-the-counter drugs and other medical products without a prescription from a physician. In addition, menstrual care products are now eligible expenses. This change was made retroactive to Jan. 1, 2020, and is permanent.