maximum grace period days

[Guest Darla K]

What are the maximum number of days that can be taken in a grace period for claims from the previous plan year?

Is there a set limit?

[Sandra Pearce]

Most of the plans I have seen have a 90 day period after the end of the plan year. The plan document and SPD should have the claim filing deadline spelled out.

[Guest Darla K]

That is why I was wondering because we are updating a few plan documents and I wasn't sure whether to give them an option of more than 90 days or not. If you or anyone else has further information I would greatly appreciate it.

[papogi]

While 90 days is the most common, we have clients with as little as 2 months, and as much as 4 months. The IRS has no maximum, but the longer you draw it out (3 months really should be enough), the longer the client has to wait before they can close out some financial numbers for the preceding year.

[Guest Carolynn]

The majority of our smaller plans have only 31 days, some plans have 60 days and thankfully, a minority choose 90 days. It draws out the plan year for both our department and the employer, most of us agree that moving the participants along is to everyone's benefit.

Carolynn

[Guest Darla K]

Thanks for all the help! It was greatly appreciated!