If I have an HSA this year and switch to an FSA next year will I still have access to any remaining funds in my HSA account from the previous enrollment?

Question:

If I have an HSA this year and switch to an FSA next year will I still have access to any remaining funds in my HSA account from the previous enrollment?

 

Answer:

Once you or your employer contributes funds to an HSA, those funds are yours to keep for use on qualified healthcare expenses.    If you decide to enroll in a healthcare FSA or limited purpose FSA the following year, you may not enroll in the CDHP option that same year.  The HSA that you had previously will remain open and your funds will remain available for your use; however, the monthly administrative fee that the state has been paying to PayFlex while you were an active HSA account holder will no longer be paid by the state, and you will be responsible for those fees.  PayFlex will deduct these administrative fees from your HSA funds each month (this is referred to as your HSA going to a “retail status” or “retail account.”   

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