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My employer is merging with another company and our benefits are to be terminated soon and then picked up by the different benefit providers by the new company. I currently have an FSA and the other employer's most attractive medical plan is the HDHP with the HSA. I believe my FSA at my current company is subject to use it or lose it when my job officially terminates. I won't have enough medical expenses to use up hardly any of my FSA at the moment since this is occurring in January, but I'd like to contribute to a pre-tax health savings account this year, as I'll need it eventually. When my FSA terminates, I'm assuming I'll forego any funds that are left in the balance of my FSA, but am I able to enroll in the HDHP with the new company and begin contributing to an HSA?

Basic Information: ER sponsors a DC plan, utilizes SH Match. ER Would like to have a greater deduction for 2013. It is a calendar year plan. Only a handful of participants mostly the owner and his family. DC plan allows for a discretionary contribution, allocated on a pro-rata (across compensation) basis. My understanding is that the plan would not be allowed to change the profit sharing allocation method to something more favorable, such as cross-tested. The ER is interested in adding a DB plan, but one that is offset by the DC plan. Typically I would add a DB plan, and amend the DC plan to add language making it crystal clear what the offset arrangement it. And do it all prospectively. In this case, they want the deduction for 2013 and the prohibition against the changes to the Safe Harbor plan during the year would prevent the PS allocation method change. Would the addition of the DB plan in 2013 be considered a change, such that it would violate the prohibition against mid-year changes on the SH DC plan? I don't know if the DB and DC would be considered 1 plan, or could be considered 2 for this purpose. The DB plan would reference the DC plan and offset, but the DC plan would not, until a new amendment is effective in 2014. If that doesn't work, could the ER set up a new DC profit sharing only plan to pair with the new DB plan? The SH Match would be provided in DC plan 1, a PS contribution would go into DC plan 2 as the offset, and then there would be the DB plan. Or is all of this pointless because under ERISA they would all be considered one plan anyways and would be an impermissable change to the original SH plan? Thoughts? Advice?