Deadline to file claims for flexible spending accounts is looming. What you need to know.
(This story has been updated to include new information.)
The deadline to submit expenses for some flexible spending accounts is quickly approaching.
The healthcare accounts with a grace period may have a cutoff on Monday, March 31, to enter claims, though dates may vary between plans. Purchases that are submitted will likely have needed to be made by March 15. Missing the deadline to file claims will result in account holders losing their funds to a “use it or lose it” rule.
Claims will require documentation, such as itemized receipts with the provider’s name, type of service, date, and amount paid − according to AccountingInsights.org.
To see if purchases could be covered by FSA accounts, benefit holders can check the IRS website or FSA pages at major retailers.
Rules around FSAs have changed
The health benefit previously carried a stricter “use it or lose it” provision but that has changed as employers have relaxed the rules.
The accounts now carry one of two options: the ability to carry funds into the next year, or the previously mentioned grace period for reimbursement.
Benefit holders with the carryover option can take a left-over balance at the end of a calendar year, up to the IRS maximum. The maximum you could carry into 2025 is $660.