Qualifying event for FSA

[R. Butler]

Employer maintains an FSA plan. Employer makes some changes to their health plans and beginning 04/01 will have an HSA plan also. Can employees stop the FSA deduction so thta thye can participate in the HSA? I think the amnswer is no, but I do not do much with health plans so I am not positive.

Thanks in advance for any guidance.

[FlexGuy]

I would agree that the answer is no because employees are not eligible for an HSA if they are covered by "other insurance" which includes the FSA. During the next open enrollment, participants can decide not to reenroll in the FSA and participate in the HSA; or if the employer offers a Limited FSA (limited to dental and vision expenses), they can elect that in conjunction with the HSA.