Are my employee contributed HSA funds available for use January 1st?
No. The only thing that is fully available on January 1st are healthcare FSA and limited purpose FSA elections.
HSA and DC-FSA funds are only available as the money is deducted from an employee's paycheck and added to their account. For instance, I elected to add $50 to my L-FSA and that full $50 was available to me to use on January 1st. I also chose to put $2,880 in my HSA. This means that $120 is deducted from my 24 paychecks this year ($120 x 24 = $2,880.) On January 1st, the State put $500 seed money in my HSA and on my January 15th paycheck, $120 was added. So I now have $620 available to use in my HSA.
NOTE: The state seed funds are ONLY for those who are enrolled in the Partnership Promise Health Savings CDHP (i.e. those in the No Promise HS CDHP do not receive the seed money.)
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