- If you have a HSA, you cannot have a medical FSA account, but you can open a limited purpose FSA to use for dental and vision expenses.
- Consider a limited purpose FSA if you contribute the annual maximum to your HSA. You should consider contributing the maximum allowed to your HSA before contributing to your limited purpose FSA because HSA dollars are not “use it or lose it” like an FSA.
- Dependent care, parking and transportation FSAs are still allowed.
NOTE: You cannot open a HSA for 2017 if there are funds remaining in your 2016 FSA as follows:
- If your FSA plan runs on a calendar year, which the state’s does, and has a grace period:
- Your FSA balance must be zero on December 31, 2016, in order to be eligible for the HSA on January 1, 2017.
- If your FSA has a balance on December 31, 2016, you will not be eligible to set up your HSA until April 1, 2017.
- If your FSA has a balance on December 31, 2016, and you are not eligible to set up your HSA with PayFlex until April 1, 2017, then you will not be able to claim any expense for January, February and March against your FSA pledge.