I have a HSA (HDHP) with old employer. I am changing jobs and my new employer offers both HDHP with HSA and non-HDHP with FSA. Their "non-HDHP with FSA" plan is very good. Will there be any tax implications since I have contributed to the HSA with my earlier employer? And what will be the contribution limit for both HSA with my old employer and FSA with my new employer?
for the HSA the limit is 1/12 of the annual maximum for each month you are not covered by an FSA (health care) on the first day of the month
annual maximum for 2022
if you are over 55 additonal $1000 must go into your HSA
if spouse is over 55 additional $1000 must go into her HSA
if you have overcontributed your options are
1) withdraw the excess + earnings - contact the administrator. since your wages on line1 of your w-2 will be reduced by your contributions, the amount withdrawn which may include employer matching contribution (employer contributions were tax-free when made but if you take them out for non-qualified medical purposes they're e taxable ) + earnings are taxable or
2) spend the entire amount in the HSA on qualified medical expenses since the penalty can not exceed 6% of the year-end fair market value of the account or
3) pay the 6% penalty. the penalty will apply each year there is a remaining over-contribution
the maximum for the health care FSA is determined by your employer but subject to limitations under the tax laws.
Once you have money in an HSA, you can withdraw it for medical expenses at any time without penalty, even if you change insurance plans.
If you change insurance plans in the middle of the year, you become ineligible to contribute to an HSA as soon as you are covered by a non-eligible insurance plan. Your annual contribution limit is prorated on a monthly basis, determining your insurance status on the first day of each month.
If you have already contributed more to the HSA than your adjusted contribution limit with the new job, you have to withdraw the excess. Contact the HSA bank and ask for a withdrawal of excess contribution. This is a different procedure than a regular withdrawal. The bank must also return any earnings attributed to the excess contribution, and that will be included in your taxable income.
If you have not contributed the new maximum amount, you can continue to make contributions to the HSA even after you change jobs. Your contribution limit is determined by the type of insurance coverage you have, but the exact timing of the contributions does not matter, as long as they are made before the end of the tax year. (For example, if you start your new job September 1, and you had a single HDHP, your maximum HSA contribution for 2022 will be $2433. If you had only contributed $1800 so far, you could contribute an additional $633 even after September 1, as long as your annual contribution total does not exceed your annual contribution limit.)
You also asked "And what will be the contribution limit for both HSA with my old employer and FSA with my new employer?"
The contribution limit for the HSA was already discussed.
The contribution limit for the FSA is $2850 for 2022, the 2023 limit has not been announced. Your FSA limit is not reduced because you contributed to an HSA in the same year. But remember, an FSA is use-it-or-lose-it. Don't contribute more than you reasonably expect to spend during the plan year.
Also, be sure to know what the plan year actually is. With my current employer, the plan year is July 1-June 30, but most employers will be January 1-December 31. You have to think about how much of your 2022 plan year will be left when you take up the new job, so you can plan how much you might spend in medical costs during that remainder.
Also be aware if your plan has a grace period or a carry over. An employer is allowed to offer a grace period of up to 2.5 months to spend your unused FSA balance. That is, if your plan ends on December 31 and you have an unused balance, you can spend it on medical care up until February 15. Or, you can have a carry over of up to $570. That is, if you have an unused balance at the end of your plan year, you can carry forward up to $570 to the new plan year. An employer can only offer a grace period or a carry over, not both, and an employer doesn't have to offer either one.
Once you know the plan year remaining and the carry forward or grace period rules, you can think about how much you should contribute.