HSA/FSA/LFSA

[Guest Nini]

We have a client that is adding a health savings account 07/01.

They currently have an FSA and are considering adding a "limited" provision to the FSA under which only dental and vision benefits would be reimbursable.

Is there a reason that those who are currently in the FSA and want to join the HSA 07/01 could not just become part of the limited FSA? The downside would be that if an employee had elected a large deferral for 2007 for use later in the year, potentially could not be able to access the money.

Thanks.

[Jacmo]

Check into the rollover rules. Those who want to participate in the HSA can rollover their Gen. FSA dollars to the HSA (and also participate in the Lim. FSA).

Self correction:--rollovers can't be done mid year. Also--see post started by barnard. Same type of problem.