If allowed by your benefits plan, you may have a period of time after your plan year ends to spend the remainder of your benefits.
Run Out Periods
Benefits with a run out period allow a set period of time following the end of the plan year to submit reimbursements for costs incurred during the plan year.
For example, if your plan includes a 90-day run out period following the end of the plan year, this means you have 90 days to submit expenses for eligible items or services you purchased during that plan year, but no new spending is allowed.
Benefits with a grace period allow a set period of time following the end of the plan year to incur new costs.
For example, if your plan includes a 45-day grace period following the end of the plan year, this means you have an additional 45 days during which you can submit expenses or use your card to pay for costs incurred during the plan year or during the grace period.
Pre-tax benefits with carryovers will allow any remaining balance, up to a specific maximum, to carryover into a 2024 enrollment. You do not need to elect into the benefit in 2024 to receive the carryover amount.
How do I know if my pre-tax benefit has one of these configurations?
From your Benepass account, navigate to the Accounts page and select your pre-tax benefit. From there, select 'Benefit details' to check your benefit's end of year behavior.
A benefit with a 90-day runout period and $610 carryover
This employee will have 90 days after the plan year ends to submit reimbursements for costs incurred during the plan year. After the 90-day runout period, any remaining funds up to $610 will carry over into the next plan year.
A benefit with both a grace and run out period.
For the first 75 days after the plan year ends, the employee can incur new, eligible costs under their grace period. When the 75-day grace period ends, the employee will have 15 days to submit reimbursements for costs incurred during the plan year or grace period.
If your plan offers a grace period, it is not eligible for carryover, and all remaining funds will expire at the end of the runout period.
What if my benefit rules do not include grace or run out periods?
If your plan does not have any of the above configured, any remaining balances will expire at the end of the plan year.
Questions? We are happy to help! Please reach out to Benepass Support for any assistance.