The March 15 Grace Period: What to Know & How to Spend Well

Have a March 15 grace period deadline? Whether you have a significant balance remaining or just a few dollars left in your Flexible Spending Account (FSA) from last year, the tips below can help you exhaust your leftover funds and make the most of your plan.

March 15 Grace Period Review

First, let’s review what a grace period is. An optional provision that your employer can add to your plan, a grace period allows you additional time — 2.5 months — to incur expenses and spend your FSA money after the end of the plan year. For example, if your FSA plan is on a calendar year schedule (January 1 – December 31) and your employer offers you a grace period, you have until March 15 to spend the remainder of your FSA. After March 15, your unused money will be forfeited under IRS rules. Check with your employer to see if your plan offers a grace period.

The March 15 Grace Period: What to Know & How to Spend Well

3 Tips for Using Your Funds Before the 3/15 Grace Period

1. Shop FSA eligible healthcare items

You can shop for guaranteed eligible items online right here at FSAstore.com, including: 

Home healthcare: Thermometers, pain relief devices, blood pressure monitors, medical alert devices, blood sugar test kits

Over-the-counter (OTC) medications: Cough, cold, flu, allergy, asthma, pain relief

Baby and child supplies: Breast pumps, bed mats, bedwetting underwear, baby monitors

Skincare: Sunscreen, acne products, medicated lip balms

Eye care: Contact lenses, eye solutions, lens cleaning cloths

Oral care: Pain relief, water flossers, denture cleanser tablets

Foot care: Orthotics, foot creams, callus and corn removers, blister treatment

Digestive health: Heartburn relief, antacid tablets, laxatives, acid reflux pillows

Vitamins & Supplements: Prenatal vitamins, glucosamine supplements, oral rehydration solutions 

First aid supplies: Bandages, pain relief creams, antibiotic ointments, first aid kits

Sexual health medications and products: OTC and prescription birth control, condoms, ED medications, fertility tests

Menstrual products: Pads, tampons, menstrual underwear, menstrual pain relief, and more

Incontinence supplies: Pads, underwear, bed under pads

2. Take inventory of your dental and vision needs

Did you know that your FSA can also be used to pay for dental and vision costs? Use your FSA to purchase eligible items like glasses, prescription sunglasses and contact lens solution. If you’re able to squeeze in an appointment to see your dentist or optician, use your FSA to pay for the cost of the visit.

3. Submit claims

While it’s important to use your account by the end of the plan year, it’s also important to know what the deadline is to submit claims. Whether your plan has a grace period ending on March 15 or not, there is another deadline you should also keep in mind: the run-out period. The run-out period is your deadline to submit claims for expenses incurred during your plan year (as well as those incurred during your grace period — if your plan offers it). All FSA plans have a run-out period. For instance, if your plan has a January 1 – December 31 plan year with a March 15 grace period deadline, it’s common to have a March 31 run-out period deadline.

Run-out periods can vary by employer, so double-check with your HR department or benefits administrator to make sure you know this important date. No matter what your FSA plan dates are, stay on top of your plan deadlines so you can use your entire balance and maximize your savings.

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