I will reach the max contribution amount for my HSA in 2022 of $3,650, then will change jobs. Coverage on the HDHP will remain until 5/31/2022 (contributions will be added through 6/3/2022 as PTO is paid out separately after all paychecks are finished). New health coverage will start 5/9/2022 and I would like to select a non-high deductible plan (contributions can begin as early as 5/26/2022).
Can I contribute to a General Purpose FSA now that I have a non-high deductible plan?
How much am I allowed? The full maximum of $2,850?
Thank you in advance!
Generally speaking, you cannot have a health Flexible Spending Account and Health Spending Account at the same time. However, there are two exceptions: limited purpose FSAs and dependent care FSAs.
A limited purpose FSA covers limited eligible expenses such as out-of-pocket dental and vision items, services, and procedures. If you’re enrolled in an HSA, you can have an LPFSA too. These are sometimes referred to as an “HSA compatible FSA”.
Like a health FSA, the maximum annual contribution amount is the same for an LPFSA (currently $2,850).
The dependent care FSA is for childcare only.
Thanks for your response, Julie! I should have clarified (post has now been edited). I would like to know if I can contribute to a General Purpose FSA (not a Limited Purpose FSA).
Also, I understand that "generally speaking, you cannot have a FSA and HSA at the same time", however my situation seems like an exception. Are there any exceptions available for my situation (switching jobs during the same tax year)? I find it hard to believe that this hasn't ever come up before in the history of the IRS, so I'm looking for guidance on what I am allowed to do for this particular situation.