Health Savings Accounts
Can employer's still offer their regular Health Care Flexible Spending Account (HCFSA) Plan to HSA participants?
You will need to amend your HCFSA plan to allow for a limited benefit HCFSA. A limited benefit HCFSA limits reimbursement to dental, vision and preventive care. Once the HDHP deductible has been satisfied, limited HCFSA participants can be reimbursed for all allowable expenses; however, once the HDHP deductible starts over, reimbursements can only be made for dental, vision and preventive
care.
If you have a grace period in place for your HCFSA plan, participant’s will be eligible to participate in an HSA during the grace period, as long as the participant’s HCFSA balance is zero as of the beginning of the grace period, or the participant’s HCFSA balance has been rolled into an HSA as of the beginning of the grace period.
View additional questions:
- What is a Health Savings Account (HSA)?
- How do employees qualify to open an HSA?
- When can contributions be made to an HSA?
- Can employer's still offer their regular Health Care Flexible Spending Account (HCFSA) Plan to HSA participants?
- Do employers have to amend the Cafeteria Plan to allow for pre-tax contributions to the HSA?
- How much can be contributed to an HSA?
- Can money be rolled over from an employee's Health Flexible Spending Account (HCFSA) or Healthcare Reimbursement Account (HRA) into an HSA?
- Can a participant transfer money from his or her Individual Retirement Account (IRA) into an HSA?
- Who can contribute to an HSA?
- What can the participant use the HSA money for?
- How are withdrawals from an HSA treated if they are not used for qualified medical expenses?
- Are contributions to and distributions from an HSA reported to the IRS?