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60 votes

Is it mandatory to have health insurance?

The individual mandate is still in effect for 2018, which means you have to have qualifying health coverage or pay a fine--I can't find the penalties for 2018 but for 2017 it was the greater of 2.5% ...
Craig W's user avatar
  • 15.9k
46 votes

Are the HSA and FSA bad deals?

So who are these accounts for? What kind of person would look at an FSA or HSA account and think, "that's a great deal"? FSA: Those who have recurring expenses, or planned procedures this ...
TTT's user avatar
  • 47.2k
20 votes

Laid off. Had FSA overages that I wasn't aware of. Can they collect?

Possibility 1: Reimbursement exceeds contributions You elect to contribute $1,200 to the FSA ($100 a month). In February, you submit $2,000 worth of expenses. You are reimbursed $1,200. In March, ...
Magua's user avatar
  • 5,097
20 votes

Laid off. Had FSA overages that I wasn't aware of. Can they collect?

It depends on what you mean by “overages.” FSA plans have a feature called “uniform coverage.” When you sign up for the plan with your employer, you are signing up for coverage up to a certain dollar ...
Ben Miller's user avatar
  • 116k
18 votes
Accepted

What is the rationale behind an FSA being "Use it or Lose it"?

The FSA, in contrast to the HSA, is not an "account" that you put money in. FSA stands for "Flexible Spending Arrangement," not "Account." Technically, it is a defined-benefit plan. Here is the ...
Ben Miller's user avatar
  • 116k
18 votes

Is it mandatory to have health insurance?

I see this sort of misconception flying around. "Well the health insurance takes my money, makes a profit, and pays me only if I need it, otherwise I 'lose' money. Clearly, I would be better off ...
Alexander's user avatar
  • 1,121
17 votes

Are the HSA and FSA bad deals?

For FSA, true, only someone who is a good planner should participate. Otherwise, you run the risk of losing unused money at the end of the year. Good planners can start with health categories that are ...
Orange Coast- reinstate Monica's user avatar
10 votes
Accepted

Opening an FSA with dormant HSA

Participation in the FSA will make you ineligible to contribute new money to the HSA. However, the money that you already have in the HSA is yours to keep until you use it. There is no time limit for ...
Ben Miller's user avatar
  • 116k
9 votes
Accepted

Is FSA spending eligible if the service is prior to Plan Year but the payment is within it?

Without being too pedantic there are a couple of important things going on. Tax deductibility of your contributions to an FSA: Each year the IRS specifies the maximum allowed contribution that ...
quid's user avatar
  • 49k
8 votes
Accepted

Who determines what is FSA Eligible?

A limited purpose FSA is materially different from a healthcare FSA. Most of the time when you read about an FSA it's within the context of a healthcare FSA. A limited purpose FSA is typically only ...
quid's user avatar
  • 49k
8 votes
Accepted

Will my FSA money roll over each year if I stop contributing

The carryover provision is not mandatory, some, not all companies, have adopted it. If your company have the carryover, there is a hard deadline, in the IRS rules, that it must be used by March 15th ...
JTP - Apologise to Monica's user avatar
7 votes

Wife has FSA with employer, and my new employer offers an HSA plan. What to do?

I believe the following statement by JAGAnalyst is incorrect: In your wife's case, if you have an HSA and she has traditional health benefits with an FSA, this is not considered a problem since she ...
CarryWise's user avatar
  • 111
7 votes

Is it mandatory to have health insurance?

It is risky to not have any sort of coverage. If you are young and do not have many assets to your name, you can plan on bankruptcy as a de facto "catastrophic plan", but in some cases this might ...
John K's user avatar
  • 260
6 votes

I have both an FSA and HSA. How can I fix this mistake?

One snag in your plan is that you alone can't undo your HSA contributions because you would also owe FICA taxes on that amount, and those need to be paid by both you and your employer. The only way ...
TTT's user avatar
  • 47.2k
6 votes

Tax advantage of FSA reimbursement vs. FSA direct payment

If I pay upfront using after-tax dollars, then get reimbursed using FSA pre-tax dollars, am I actually gaining anything? You are paying upfront with your personal finances (using after-tax dollars), ...
Ben Miller's user avatar
  • 116k
6 votes

Are the HSA and FSA bad deals?

The HSA is the best investment vehicle (once employer contributions are maxed). This is because it is the only investment with triple tax advantage. Account contributions are pre-tax, earnings are tax-...
Jacob Read's user avatar
5 votes
Accepted

HSA/FSA, changing health plans mid year, concurrent coverage

You said "you can't have an HSA if you are eligible to contribute to an FSA," but that's not quite accurate. The fact is you can have an HSA, but you can't contribute to it if you have an FSA or any ...
Ben Miller's user avatar
  • 116k
5 votes

Wife has FSA with employer, and my new employer offers an HSA plan. What to do?

I work in the FSA/HSA/HRA industry and just wanted to point out that if your wife has a medical FSA, you cannot contribute to an HSA whether or not you are covered by her medical insurance plan. The ...
Aaron Hunt's user avatar
5 votes
Accepted

Can we have both HSA and DCFSA

Yes, you can have both a Dependent Care FSA and a medical HSA. However, a Dependent Care FSA is NOT for health care coverage for dependents. It is for daycare and other related expenses (day camps, ...
D Stanley's user avatar
  • 135k
5 votes
Accepted

How is an FSA's total annual amount of contribution available on the first day of coverage?

FSA IS an entirely different animal from HSA. FSA is a "spending arrangement" not a "savings account." With FSA, you elect to forego some amount of income for the year. As of January 1 you have ...
quid's user avatar
  • 49k
5 votes
Accepted

Moving from Family HDHP/HSA, to individual HDHP/HSA and individual FSA?

Answers to your questions: Can I continue with my individual HDHP from my employer and change my family HSA contribution to an individual; and at the same time can my wife do the individual FSA? ...
Ben Miller's user avatar
  • 116k
5 votes

Can I switch from FSA to HSA mid-year while switching employers?

I am going to start with a comment: As mentioned above, I have spent all the FSA funds. Your ability to use FSA funds has a deadline related to your old employer. If you hadn't spent the funds by ...
mhoran_psprep's user avatar
4 votes

Is information on my Dependent Care FSA claim form shared with the IRS?

If you have a nanny, not a day care center, a nanny you hire, you are responsible for the Nanny Tax, i.e. taxes regarding a household worker. And yes, she's responsible for income tax. This is not ...
JTP - Apologise to Monica's user avatar
4 votes
Accepted

Can my former employer reimburse my FSA expense due to their error?

This is an unfortunate situation for you. You have zero chance at your question number 1, if someone was going to bend this rule for you it would have happened already. The answer to question number ...
quid's user avatar
  • 49k
4 votes

Married filing separately: Can I have an FSA while my husband has an HSA?

Unfortunately, you cannot use the FSA with your employer, because your husband is automatically eligible to have his medical expenses paid for out of your FSA. If you do set up an FSA with your ...
Ben Miller's user avatar
  • 116k
4 votes

Using a healthcare Flexible Spending Account at the same time as a Health Savings Account?

Yes, FSA funds can be used to pay for medical expenses incurred by spouse and dependents (so long as the dependents have little to no income and can't be claimed by another). However, her FSA ...
Hart CO's user avatar
  • 70.5k
4 votes
Accepted

Could my FSA from my previous job disqualify me from doing an HSA with my new one?

FSA is an employer plan with a feature called use-it-or-lose-it. It ends when your employment ends, and any money remaining in the plan is forfeited. If you left your old employer in August 2018, you ...
Ben Miller's user avatar
  • 116k
4 votes
Accepted

Cannot be reimbursed by commuter benefit FSA after being let go?

TL;DR: Use up the balance for fare cards and use those cards while looking for new work or commuting to a new job as it will probably take a while for any new employee benefits to activate. P.S. ...
Morrison Chang's user avatar
4 votes
Accepted

My dentist charged me for PPE and my insurance won't cover it. Can I use my FSA to pay for it?

Can I use use my flexible spending account(FSA) to cover the PPE charge from my dentist? Yes you can. This is a fee charged by your dentist. This is to pay for the equipment the doctor used. It wasn'...
mhoran_psprep's user avatar
3 votes
Accepted

401k deductions and ability to use a dependent care FSA

In your particular scenario, your wife's earned income would be based on $1500, which would be the max you could take advantage of from your employer's FSA plan. (You probably can't use your wife's ...
TTT's user avatar
  • 47.2k

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