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.
