Question: If I’m currently on the Signature Plan and I change to the HSA Advantage Plan for 2022, can I still contribute to an FSA (flexible spending account)?
Answer: No. The IRS prohibits members of the HSA Advantage Plan (and any HSA medical plan) from contributing to FSA accounts. However, HSA Advantage Plan members can open a health savings account (HSA). The HSA allows you to use pretax dollars to pay for eligible healthcare expenses. In addition, money in an HSA rolls over from year-to-year, whereas FSA contributions must be used (or forfeited) each year.
Employees who elect the HSA Advantage Plan will receive “seed money” from the health system to their HSA on January 1, 2022. The amount from the health system is $500 for employee-only coverage and $1,000 for any type of employee plus family coverage (double the amount provided in 2021).
Any benefit-eligible employee may also open a dependent care FSA (flexible spending account) to cover eligible expenses for dependent (including children) care. This account is not connected to any medical plan and enables you to pay dependent-care expenses with pretax dollars.
For helpful information about medical FSA and dependent care FSAs, review this fact sheet. To learn more about HSAs, review the fact sheet and FAQ document. For more details, please visit the interactive benefits guide.
Question: If I am currently on the HSA Advantage Plan and change to the Signature Plan for 2022, can I still contribute to my HSA (Health Savings Account)?
Answer: No, under IRS guidelines, you can only contribute to the HSA if you are enrolled in the HSA Advantage medical plan. Please note that you can use any funds remaining in your HSA until the funds are depleted – there is no deadline to use the funds.
If you elect the Signature Plan, you may open a healthcare FSA to use pretax dollars to pay for eligible healthcare expenses. Any balance remaining in a healthcare FSA at the end of the year is forfeited.
Any benefit-eligible employee may also open a dependent care FSA (flexible spending account) to cover eligible expenses for dependent (including children) care. This account is not connected to any medical plan and enables you to pay dependent-care expenses with pretax dollars.
For helpful information about medical FSA and dependent care FSAs, review this fact sheet. To learn more about HSAs, review the fact sheet and FAQ document. For full details, please visit the interactive benefits guide.
