I had an HSA under a HDHP for a former employer earlier this year. I now work for an employer that offers a non HDHP. HR says that I cannot enroll in an FSA if I had already enrolled in an HSA earlier in the year. I can't find any documentation online that specifically states that. I understand I cannot enroll and contribute to an HSA if I already have a FSA. However, since I no longer have a HDHP and can no longer contribute to an HSA, can I enroll in my employers general purpose FSA, even if I contributed to an HSA earlier this year?
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if it were the other way around t(at the start of the year - non-limited FSA) the answer would be you could not start an HSA because the FSA could be used to pay expenses incurred at any time during the year representing coverage under a non-HDHP.
An FSA can only reimburse expenses incurred during the participant’s period of coverage. The period of coverage is the period of the FSA plan year in which the employee is enrolled. Thus any expenses incurred before or after the employee’s FSA period of coverage are not reimbursable. so if the FSA has a calendar year it could be used to reimburse expenses that you incurred for the months for which you contributed to the HSA. thus your HSA would not be allowed (the FSA would represent non-HDHP coverage). it would seem that an FSA contribution would be allowable but then you would have excess contributions to the HSA.
however, I have not read the employer's plan so maybe there's some provision in it that bars the FSA for you. you need to talk to your employer and get specifics.
"so if the FSA has a calendar year it could be used to reimburse expenses that you incurred for the months for which you contributed to the HSA. thus your HSA would not be allowed (the FSA would represent non-HDHP coverage). it would seem that an FSA contribution would be allowable but then you would have excess contributions to the HSA. "
So to be clear, if my HDHP coverage and thus HSA contribution timeline and FSA coverage do not overlap, then technically the FSA contribution should be ok? I don't understand how it would be possible for me to contribute to both an HSA and general purpose FSA at the same time if my healthcare coverage for both are at completely separate times. Leaving an employer means termination of an FSA, so anything I do afterwards is fine right?
what is the plan year for the FSA?
say contributions to HSA were in January and FSA on a calendar year contributions were made starting in April with a new employer. the problem is the plan year of the FSA covers the period you had an HSA which represents disqualifying coverage. the FSA can be used to pay for expenses incurred in January when you were on the HSA. since it is your employer denying FSA coverage discuss it with them. can't really say what their reasoning is since the problem would appear to be with the HSA contributions.
Spoke with a plan expert for my company and they said I am fine. They didn't know what that comment about an HSA and FSA in the same year meant as coverage of the FSA is only for periods of employment. I can't expense anything that occurred before I enroll in to the new health plan with the FSA (which is what my understanding of it was. I have never heard of a plan that allowed you to expense things that occurred before you even started working).
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