All claims costs for the Dependent Care Account and the Medical Expense Reimbursement Account must be incurred during the calendar year (which is the plan year) for which the employee made the election and also during a period in which the employee was a participant in the plan.
Claims must be submitted for reimbursement by March 31 of the next plan year.
Employees who cease to participate or separate from service mid-year have a 90-day grace period to file claims after the date their participation ended.
Any unused monies that have been deducted for the flexible spending accounts are forfeited to the plan. Enrolled participants either use the benefit or lose it.