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Frequently Asked Questions Insurance

Flexible Spending Account

  • The grace period is an additional 2 ½ months (running January 1 through March 15) during which you can incur eligible expenses that can be reimbursed from your prior year’s balance.  The grace period helps participants avoid forfeiting any of the funds deposited in their FSA account.  Dependent care accounts have a grace period every year.  The last grace period for health care accounts is January 1, 2015 through March 15, 2015.  
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  • Yes.  Like general expense health care FSAs, limited expense health care FSAs have a grace period from January 1, 2015 through March 15, 2015. During this grace period, you can incur eligible expenses for your type of health care FSA and be reimbursed from your 2014 balance. This is the last grace period for health care FSAs. If you enroll in a general expense or limited expense health care FSA for 2015, you will not have a grace period.  Instead, you will be able to carry over up to $500 of unspent funds into another health care account in 2016.
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  • By law, annuitants (other than reemployed annuitants) cannot participate in any flexible spending account (FSA) programs, including FSAFEDS. FSAs are a way of setting aside pre-tax salary for reimbursement of eligible expenses. Annuitants receive annuities, which are not salary. The balances in your Health Care FSA (HCFSA), LEX HCFSA and Dependent Care FSA (DCFSA)  are treated differently if you separate or retire before the end of the calendar year. Your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement. There are no extensions. Any eligible health care expenses incurred prior to the date of separation will still be reimbursed but those incurred after the separation date are not reimbursable, even if you accelerated your allotments. Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or the end of the calendar year, whichever comes first. Please note, in order to take advantage of the grace period for your DCFSA, you must be actively employed and making allotments through December 31 of the Benefit Period.
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