Jump to content

HDHP, HSA and Spouse's FSA


Recommended Posts

An employee has medical insurance through her spouse and and an FSA with my company. She recently found out that her spouse's company is changing their medical insurance as of April 1 to a High Deductible Health Plan with an HSA. We do not offer a limited FSA. Does she need to stop her contributions to our FSA?

Link to comment
Share on other sites

  • 1 year later...
Guest GKNpro
Enrollment in a HSA makes this person ineligible for the FSA, unless the FSA is a "limited purpose" or "post-deductible" type plan.

How about if an H.S.A. bank account is never opened up for the individual on an HDHP? Can they then contribute to a 'regular' FSA (not Limited Use)?

I have triplets with one requiring surgery on January 4th - good thing about FSA's is all of the funds are available right away while HSA is not. Also, I may be leaving the country (and hence, my employer) in June.

Thanks in advance,

Anatoliy

Link to comment
Share on other sites

  • 7 months later...
Guest AHayhow
An employee has medical insurance through her spouse and and an FSA with my company. She recently found out that her spouse's company is changing their medical insurance as of April 1 to a High Deductible Health Plan with an HSA. We do not offer a limited FSA. Does she need to stop her contributions to our FSA?

We have a similar situation - the spouse selected family coverage under a HDHP during open enrollment and wants to contribute to the HSA begining 7/1. An advisor is telling us that termination of the FSA contributions prior to 7/1 is not enough to make this a compliant situation under the HSA rules. She is telling us that since the HSA and FSA are in the same tax year (even though plan years do not cross over each other), that no contributions can be made to an HSA by the spouse. Has anyone had this situation and if so, what have you done? Thanks!

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...