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Claims extension deadline


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I'm a little confused by this. So let's say you have a plan with a Health FSA, that has a rollover provision, but NOT a grace period. It does have a 30 day "runout" period to submit claims for prior year.

Now assume they executed a CARES amendment, which states, to paraphrase, that the plan's claims procedures and other statutory deadlines are temporarily extended by the "outbreak period" , and the outbreak period extends until 60 days after the end of the National Emergency, etc...

We of course are not past the end of the National Emergency.

So, would you interpret this as allowing the 30 day "runout" period to be extended, for submission of 2020 claims?

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The tolling period is actually the earlier of 1 year or 60 days after declaration of the end of the National Emergency.  Since the example is for a plan-based deadline (as opposed to an individual-based deadline like mid-year change in status) and the COVID-19 National Emergency has yet to be declared over, you just add 1 year to the original deadline.  So, assuming the 30-day run out period for claims incurred in plan year 2020 means that normally, all claims must be submitted by January 30, 2021, due to the tolling period, the participants will have until January 30, 2022 to submit those claims.


Just to be clear, you might be confusing the joint notice regarding the deadline extensions with IRS Notice 2020-29 and 2020-33.  The extensions were not part of the CARES Act amendments and they are required, not optional like the provisions from the 2 notices.


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