My employer's benefit elections go July 1 - June 30th.
I was originally enrolled in an FSA. Due to the birth of my child in August (2022), I was able to switch my health plan to HDHP. With that, I expected to be able to contribute to an HSA. However, my employer states I cannot do this:
"A Health Care Flexible Spending Account once elected, is for the plan year and is front loaded. Even though you lowered the amount, the account remains open for the plan year, which would not allow enrollment into an HSA. Due to IRS rules, the FSA is for the entire plan year and an HSA can be elected for the next plan year. Even though contributions stopped for the FSA, it cannot be closed earlier. The account will remain open for the remainder of the plan year until 6/30/23."
I am trying to find IRS information regarding this, but finding some conflicting information, maybe because it is different in different years. Is my employer correct? I appreciate your help!
