@Pthacker52328 wrote:
So, my new company offers an FSA instead of HSA, I do not know why, and I don't expect it to change. I "enrolled" in this FSA for 2021, not knowing if there was any alternative. I still have a balance in my HSA but have not used it in 2021. It is clear to me that I cannot do both. What I am thinking is that I would choose NOT to enroll in company sponsored FSA for 2022, as there is no company match, and, instead, start funding and using the existing HSA again. It is clear that there would be no payroll deduction, and I'd have to manage this with my own funding. I will not do this if I cannot have the HSA tax advantage though. So, if legal, the plan would look like this:
- do not enroll in company sponsored FSA for 2022
- use after tax dollars to re-start HSA funding in my existing HSA account for 2022
- claim these after tax dollars on my 2022 taxes as HSA contributions and get the income tax reduction.
Yes, that plan is available to you. You will get a federal tax deduction for out of pocket HSA contributions. You may or may not get a state tax deduction, depending on your state.
Note that you can spend from the HSA even if you are enrolled in the FSA, you just can't make HSA contributions.
