Can you have an FSA for part of the year then swicth to an HSA?

[Guest cjsmith]

I know you cannot have an HSA and FSA at the same time, but can you have one and then the other within the same calendar year?

For instance, say you start an FSA toward the begining of the year and then stop it at say September. Then, during an October HDHP renewal date you enroll in and fund an HSA. Seems like this should be possible.

I appreciate any opinions.

[J Simmons]

I know you cannot have an HSA and FSA at the same time, but can you have one and then the other within the same calendar year?

For instance, say you start an FSA toward the begining of the year and then stop it at say September. Then, during an October HDHP renewal date you enroll in and fund an HSA. Seems like this should be possible.

I appreciate any opinions.

If you can appropriately stop the FSA in September, then yes for October through December of that same calendar year you can have HSA contributions if employee is only covered and is in fact covered by HDHP for those months. The eligibility for making HSA contributions is determined on a calendar month basis.

Now, for stopping the FSA in September, are you terminating the entire cafeteria plan that the FSA is a part? I'm just not sure how you stop it mid-year.

A question that this raises for me, though, is suppose the FSA is completely used up by the end of August. If you had HDHP coverage (and no other coverage that would disqualify it), would that employee then be eligible to make FSA contributions for the months of September through December of that calendar year? It seems arguable that once the FSA is depleted, there is no longer 'coverage' under the FSA that would disqualify from HSA contributions.