Question of the Week

Posted by BAS - 07 April, 2016

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Q.- We offer a HDHP with an HSA.  We also offer a FSA with a runout period.  Can someone who is participating in the FSA for 2015 enroll in the HDHP/HSA even though the plan has a runout?

A.-  Maybe.  Generally, an individual cannot enroll in an HSA if the individual is participating in a general purpose FSA.  The IRS has said the following-

Health FSA – grace period.   Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior year plan is zero. 


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