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Posted

Does anyone know if an employer can legally terminate an FSA to start an HSA (mid plan year)? I am aware of the transition relief available. Thanks!

  • 2 weeks later...
Posted

You have to read the Cafeteria Plan document. There should be a section on terminating the plan. We write ours with pretty liberal termination provisions, i.e. the plan sponsor can terminate the plan at any time.

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