FSA and HSA

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
omega
Posts: 85
Joined: Wed Feb 01, 2017 9:38 pm

FSA and HSA

Post by omega » Wed Oct 31, 2018 5:01 pm

Hello,

I just realized that today is the last day to signup for Wageworks.

1. Is there any income restriction to signup for Dependent Care Flexible Spending account? As in are we not eligible for this benefit if our joint income is beyond certain number.
2. I am eligible to signup for upto $5000 benefits through my employer. Last year my spouse's employer had to bring down the elected amount later on because they said his income crosses some threshold.
3. Can we use the FSA to pay for our kids summer camps
4. My husband is signed up for high deductible health plan through his employer. Can I sign up for HSA through my employer to pay for the out of pocket expense.

Thanks

simas
Posts: 288
Joined: Wed Apr 04, 2007 5:50 pm

Re: FSA and HSA

Post by simas » Wed Oct 31, 2018 5:18 pm

3. Yes, if the camp is required in order for you to be able to go to work (i.e. full day activity). i.e. we pay to YMCA summer programs and get reimbursed under FSA

Spirit Rider
Posts: 9129
Joined: Fri Mar 02, 2007 2:39 pm

Re: FSA and HSA

Post by Spirit Rider » Wed Oct 31, 2018 8:55 pm

4. Section 125 payroll deductions for HSA contributions can only occur if the employee has an HDHP through their employer. If it is a family HDHP plan. Under the rules for married people, the contribution limit can be allocated any way the two of you choose. You must open your own HSA account and make your contributions directly to your HSA account. However, it is usually best to make the contributions by the spouse able to use Section 125 payroll deductions.

clydewolf
Posts: 732
Joined: Tue Jul 21, 2015 12:51 pm

Re: FSA and HSA

Post by clydewolf » Thu Nov 01, 2018 1:57 pm

omega wrote:
Wed Oct 31, 2018 5:01 pm
Hello,

I just realized that today is the last day to signup for Wageworks.

1. Is there any income restriction to signup for Dependent Care Flexible Spending account? As in are we not eligible for this benefit if our joint income is beyond certain number.
2. I am eligible to signup for upto $5000 benefits through my employer. Last year my spouse's employer had to bring down the elected amount later on because they said his income crosses some threshold.
3. Can we use the FSA to pay for our kids summer camps
4. My husband is signed up for high deductible health plan through his employer. Can I sign up for HSA through my employer to pay for the out of pocket expense.

Thanks
The IRS has these rules: https://www.irs.gov/newsroom/ten-things ... are-credit

User avatar
serbeer
Posts: 1165
Joined: Fri Dec 28, 2007 2:09 pm

Re: FSA and HSA

Post by serbeer » Thu Nov 01, 2018 5:48 pm

You both can sign up for dependent care FSA, but total annual contribution cannot be over $5K:
https://finance.zacks.com/can-husband-w ... -9058.html
So if you husband is already signed up, you can only sign up for $5K minus his amount.
If he was HCE last year and the amount was curtailed as a result, this year he may be curtailed during signing period to begin with, eg limited to $3.5K, and in this case you could sign up for remaing amount (5-3.5 = 1.5K).
If he already signed up for full 5K, you cannot sign up.
If he did not sign up yet, and you are not HCE (highly compensated employee) it makes sense for you sign up for full $5K instead of him this year.

Post Reply