HSA the only option?

[SLuskin]

I have a new client that has introduced an HSA as the only option. The deductible is $2000 and the employer is contributing $500 in January and $500 in July. They have asked me to put in a limited FSA for dental, vision and preventive.

The question is - if an employee, who elects employee only coverage, is married to someone who works for another employer and that employer offers a non-high deductible plan, where does that leave the employee? The employer didn't even tell me that their health plan was an HSA plan - I found out in the open enrollment meeting and did an abrupt about face for the FSA.

[g8r]

It depends on whether the employee's spouse's coverage is individual coverage or family coverage. If it's family coverage then the employee isn't eligible to receive or make HSA contributions b/c the employee has other coverage that doesn't satisfy the HDHP requirements.

[GBurns]

I don't think that it matters whether the spouse has individual or family coverage, but more whether it is a HDHP. If not HDHP then no HSA.

There is a new IRS Pub that explains, I think that it is Pub 969.