HSA/HDHP

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Topic Author
AzleaHeights
Posts: 9
Joined: Sat Jun 24, 2017 1:14 pm

HSA/HDHP

Post by AzleaHeights » Tue Nov 12, 2019 7:13 pm

Hello all,

I am thinking about switching over to HDHP/HSA. Can I still have HSA and FSA at the same time?
I'm thinking about putting $1,000 into FSA and I will use that fund to pay my out-of-pocket expenses. I'm not planning to withdraw from my HSA.
Is that allowed?

Thanks in advance!

fabdog
Posts: 786
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: HSA/HDHP

Post by fabdog » Tue Nov 12, 2019 7:56 pm

if you have an HSA, you can only have a "limited purpose" FSA, limited in that it can only be used for eligible vision and dental expenses. Your employer must offer it as a limited purpose FSA.

So no, can't use the FSA for your medical deductible

Mike

Topic Author
AzleaHeights
Posts: 9
Joined: Sat Jun 24, 2017 1:14 pm

Re: HSA/HDHP

Post by AzleaHeights » Wed Nov 13, 2019 3:59 pm

Let's say I use my FSA funds to pay my $100 doctors visit.
Now, I saved the receipt and 20 years down the road I use HSA funds to reimburse that $100 doctor's visit.
Are you saying that it's NOT allowed? Then who's going to check a 20-year receipt? :shock:

anon_investor
Posts: 578
Joined: Mon Jun 03, 2019 1:43 pm

Re: HSA/HDHP

Post by anon_investor » Wed Nov 13, 2019 4:20 pm

AzleaHeights wrote:
Wed Nov 13, 2019 3:59 pm
Let's say I use my FSA funds to pay my $100 doctors visit.
Now, I saved the receipt and 20 years down the road I use HSA funds to reimburse that $100 doctor's visit.
Are you saying that it's NOT allowed? Then who's going to check a 20-year receipt? :shock:
#1 committing fraud is not just frowned upon it is illegal.


#2 the bigger issue is that for most people it is impossible to simultaneously contribute to an FSA and HSA. And since only a small portion of funds in an FSA will not be forfeited if not used at the end of the year, effectively people generally would not have the option of choosing to pay via FSA instead of HSA.

#3 as the prior poster said if you have a "limited purpose" FSA you can only pay for dental/vision expenses for it, so you would not be able to pay for a regular doctor's visit with that FSA without committing some kind of fraud (see point #1).

#4 even if you were going to try to pay for non-permitted expenses with a "limited purpose" FSA, there are many barriers put in place to prevent fraud, such as you would have to submit documentation to the administrator if you were asking for a reimbursement, and if you had a debit card depending on the providers coding on the service provided it may not be accepted.

#5 committing fraud is not just frowned upon it is illegal.

an_asker
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Joined: Thu Jun 27, 2013 2:15 pm

Re: HSA/HDHP

Post by an_asker » Wed Nov 13, 2019 4:21 pm

What you'd be doing is illegal.

That said, I don't think there is enough manpower to go around checking everyone's HSA withdrawals. But if you're caught in an audit, you'll be in trouble for sure.

an_asker
Posts: 2487
Joined: Thu Jun 27, 2013 2:15 pm

Re: HSA/HDHP

Post by an_asker » Wed Nov 13, 2019 4:23 pm

anon_investor wrote:
Wed Nov 13, 2019 4:20 pm
[...]#2 the bigger issue is that for most people it is impossible to simultaneously contribute to an FSA and HSA. And since only a small portion of funds in an FSA will not be forfeited if not used at the end of the year, effectively people generally would not have the option of choosing to pay via FSA instead of HSA.
[...]
I think what OP could do is - let's say:

HDHP/HSA in 2020. Let's say ends up with $5000 in HSA balance.
PPO/FSA in 2021. Get the $100 payment reimbursed from FSA.

In 2040, reduces HSA balance by $100 claiming the 2021 doctor visit.

Illegal, but unless audited ... might get away with it.

Topic Author
AzleaHeights
Posts: 9
Joined: Sat Jun 24, 2017 1:14 pm

Re: HSA/HDHP

Post by AzleaHeights » Wed Nov 13, 2019 4:55 pm

Thanks for the feedback.
I'm not going to commit a fraud. I just wanted to make sure my understanding is correct.

Thank you all!

Mobot
Posts: 1
Joined: Thu Nov 14, 2019 3:52 am

Re: HSA/HDHP

Post by Mobot » Thu Nov 14, 2019 4:02 am

Doesn’t sound like you are planning on it, but just an FYI most limited purpose FSAs turn into Traditional FSAs (post deductible FSAs) if you reach your medical deductible on your HDHP. Meaning you can use it for medical expenses as well at this point.

Double check with your employer as they would have decided whether or not to have this feature. It’s a nice feature if you have a planned procedure and want the extra tax savings.

Topic Author
AzleaHeights
Posts: 9
Joined: Sat Jun 24, 2017 1:14 pm

Re: HSA/HDHP

Post by AzleaHeights » Fri Nov 15, 2019 12:56 pm

Thank you!

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