former HSA plan participant in non-HSA plan for 2008

[alexa]

I have someone who signed up for our HSA plan in 2007 and switched to 1 of our non-HSA plans for 2008

He is withdrawing any copays, deductible , etc.. out of HSA for 2008 medical expenses

I am assuming that is ok but just wanted to check that he didn't need to be enrolled in a high-deductible health plan for 2008

Can someone refer to me to some good resources on HSA's/HRA's/limited FSA's

thanks

[Guest SHaddon]

If an individual has an existing HSA but is not currently enrolled in a qualifed high deductible plan then they may not contribute additional funds to the HSA but may continue to claim eligible expenses.

[leevena]

You stated that the HSA was for 2007 and that he/she is withdrawing HSA dollars for 2008 incurred claims---this is not allowed. They can withdraw for expenses incurred in 2007 only. Otherwise, the dollars stay frozen.

[MARYMM]

You stated that the HSA was for 2007 and that he/she is withdrawing HSA dollars for 2008 incurred claims---this is not allowed. They can withdraw for expenses incurred in 2007 only. Otherwise, the dollars stay frozen.

Not correct. See the US Treasury's website for HSA FAQ's

http://www.treasury.gov/offices/public-aff...ing.shtml#hsa10

I have an HSA but no longer have HDHP coverage. Can I still use the money that is already in the HSA for medical expenses tax-free?

Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.

[alexa]

You stated that the HSA was for 2007 and that he/she is withdrawing HSA dollars for 2008 incurred claims---this is not allowed. They can withdraw for expenses incurred in 2007 only. Otherwise, the dollars stay frozen.

Not correct. See the US Treasury's website for HSA FAQ's

http://www.treasury.gov/offices/public-aff...ing.shtml#hsa10

I have an HSA but no longer have HDHP coverage. Can I still use the money that is already in the HSA for medical expenses tax-free?

Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.

Leevena- do you have a cite for your response no employee can't withdraw funds for 2008 expenses unless in a high deductible health plan for 2008?

Much thanks

Lexy