»  Flexible Spending

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.

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 employers who are using AFA’s Section 125 services, AFA cannot support the FSA rollover.

For more information contact us and an AFA HSA specialist will contact you personally.