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Grace Period Offers Some Relief from 'Use It or Lose It' Flexible Spending Account Rule
FIS ReliusLink to more items from this source
May 25, 2005
Excerpt: Cafeteria plan sponsors are not required to provide for a grace period. However, if a sponsor wants to provide one, then the grace period must apply to all participants in the cafeteria plan. In addition, to use the grace period, an employer must amend its cafeteria plan document before the end of the plan year for which it wants to implement the provision. As part of this amendment, employers will need to consider modifying the plan's 'run-out' period[.]

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