Letâs assume that a pure bread goat cost $300 each and a badger costs $500 each. (as a side note I found it is illegal to own a badger in England. Who knew? That would make the total cost of those two layers about $216,000 Maybe we could get a deal on bulk goats â Iâm not sure how that would work.
Some employers allow a grace period of up to two-and-a-half months into the next plan year during which you can claim FSA expenses against your current year's account balance. You must be participating at the end of the plan year for the grace period to apply. Click here for details on the grace period.
Also, the adoption of a grace period may, in fact, create some confusion in the minds of employees who have gotten used to a 12-month FSA period as to how much to defer into the FSA account. Lastly, employers should keep in mind that a longer reimbursement period may encourage employees to deposit more in their FSAs.