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Do I still need to offer Health Flexible Spending Account to my
employees who choose an HSA?
A "General Purpose" Health FSA is considered to be "other health plan" coverage
and would disqualify your employees from participating in an HSA.
On the other hand, you may choose to offer a "Limited-Purpose" Health FSA
which limits reimbursements to dental and vision expenses only and would allow
your employees to participate in both an HSA and a Limited-Purpose FSA. Since dental and vision
expenses are qualified expenses under an HSA, your employee could not take a reimbursement for
both accounts for the same expense.
Dependant Daycare Accounts are eligible in conjunction with an HSA.
As of 2007, contributions to an employee's HSA from a FSA/HRA is allowed but
must be the lesser of the balance in the health FSA/HRA as of September 21, 2006,
or the balance in the health FSA/HRA as of the date of the distribution; and, must
be contributed directly to the employee's HSA before January 1, 2012.* The
rollover is not includible in income and does not count against the maximum tax
deductible contribution.
For more information, contact us and an AFA HSA specialist will contact you personally.
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