Can I open an HSA mid-year after switching jobs if I had an FSA with my previous employer (funds fully used, no COBRA)?

[vetco1997]

I changed employers mid-year. I had an FSA account and now I would like to open an HSA account with the new employer. This would happen in the same fiscal year. The FSA funds have been used already. I also understand that my new employer funds a small amount of the HSA on my behalf. Even if I don't open the HSA account myself, am I allowed to have it via my employer funding it on my behalf? Thanks!

[Opus 17]

Generally, yes.  The details are below.

Your eligibility to contribute to an HSA is determined based on your medical coverage as of the first day of each month.  You must be enrolled in an HSA-eligible plan, and not have any "other coverage."  Other coverage would include both the prior health plan (if it was not HSA-eligible) and the FSA.  (You also have "other coverage" if you are married and your spouse has an FSA, because that covers you.  And it counts as other coverage merely by existing, even if she has spent all the funds.) 

For example, suppose you quit company A on June 15, but your health coverage goes to the end of the month, and you have a 60 day grace period to use up your FSA funds.  Your eligibility to contribute to an HSA would start on July 1 if there were no funds in the FSA, or would start on the first day of the month after you use up the FSA funds, or would start on Sept 1 after the expiration of the grace period, if you did not use all the funds.

Also, if you plan to remain eligible for HSA contributions through all of 2026, you can contribute the maximum for 2025 under the "last month rule" even though you were not eligible for some months, as long as you are eligible as of December 1, 2025. 

[vetco1997]

Thank you so much for your response. Adding further details to tailor my situation. I am single, so no other coverage through a spouse. The coverage from my previous employer ends on 8/31/2025. The FSA account says use from 1/1/2025 to 8/22/2025 (my last day was 8/22/2025). The FSA account funds were zero because they were consumed already.  Based on this, am I allowed to open the HSA account through my new employer and coverage? The new insurance is a high deductible insurance. My new employer opens the account automatically on my behalf and adds funds on my behalf. Thanks! 

[Opus 17]

You are eligible starting 9/1/25.  That means you can contribute 4 months worth ($4300 ÷ 12 x 4) =$1,433.33; OR if you plan to remain eligible for all of 2026 (next year), you can contribute the maximum of $4300 for 2025 using the last month rule.