Can you start a new HSA after starting a new job if your previous job included an FSA?
I'm having a hard time teasing out the details but it appears to me that once you have a (non-limited use) FSA in a calendar year, it prevents you from having any form of HSA later in that calendar year, even if you switch jobs. Is this correct?
Suppose you work for company A from January until June. Company A provides a standard PPO and employee uses a standard (non-limited use) FSA to defer $500. Entire $500 is spent in March on medical care.
Employee leaves company A on June 30 and then joins company B on July 1. Company B provides HDHP, including company paid HSA contributions of $1K. Employee wants to contribute an additional $2K to HSA.
Is this possible? Can the employee contribute the $2K? Can the employee even sign up for the HDHP given that it includes the company paid HSA contribution of $1K? Does it matter that the FSA from company A is gone by the time the HSA starts?
TIA.
