•   InTouch provides access to your beneifts, 24/7. Login to InTouch  or  Register for InTouch             Access your FSA, HRA, HSA, and transportation benefts, 24/7. Login to MyFlex.             Access your COBRA benefits, and make a payment, 24/7. Login to the COBRA Web Portal. 
  • Run out, grace period, and carryover? Let’s sort these out. 

    In helping employees optimize their benefits, it makes sense to know the basics behind a run-out period, grace period, and carryover.

    Starting with the run-out period, this is the required length of time allowed for claim submission at the end of a plan year. For PacificSource Administrators, FSA, HRA and transportation plans have a 90-day run out, which gives members a three-month period to submit any outstanding claims incurred during their eligibility period. 

    Although not required, employers may choose to offer either a grace period or carryover, and it’s important to understand their differences.

    A grace period is a plan option that can be offered by the employer on any of the FSA account options (i.e., Health FSA, dependent care, and supplemental premiums). The grace period is a two-and-a-half-month extension to incur services after a plan ends. The 90-day run out would begin at the end of the grace period.

    A carryover is the ability to carry an unused balance from one plan year to the next. Carryover is an optional plan provision that can be offered by the employer on the Health FSA, HRA or transportation plans (with different IRS rules for each). When a carryover is available, the run out begins at the end of the plan year. Carryover amounts:

    • Health FSA – Employer can allow an unused balance up to $500 to be carried into the new plan year
    • HRA – Employer can allow a flat rate or 100%
    • Transportation – Employer can allow $0 or 100%

    Employees enrolled in a Health FSA—with coverage through the last day of the plan year (including participants enrolled in COBRA or voluntary PCA)—can carry over their unused amount to the next plan year, even if they do not have a minimum salary reduction in the new plan year. 

    Keep in mind that employers can establish custom rules around carryover. For example, they can establish a maximum rollover, or if a member must enroll in the new plan year to allow carryover from the previous year.  
       

    Questions?

    You're always welcome to contact us!

    PacificSource Administrators
    110 International Way
    Springfield, OR 97477

    Sales and Service: PSAsales@pacificsource.com 
    Flex Benefits: PSAcustomerservice@pacificsource.com
    COBRA Benefits: COBRA@pacificsource.com

    (541) 485-7488 or toll-free (800) 422-7038  
    Fax (541) 485-8759 or toll-free (800) 575-1109 

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