New job, does my FSA->HSA reasoning makes sense?

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ScaledWheel
Posts: 165
Joined: Sat Jul 23, 2011 8:06 pm

New job, does my FSA->HSA reasoning makes sense?

Post by ScaledWheel »

Want to do a double check here. The health insurance landscape is pretty convoluted so despite my best efforts to understand this I'm a bit unsure and want to confirm I'm under compliance.

Here's my situation:
- Terminated old job on 4/3, start new job later this month. My old insurance terminates 4/30 and coverage at new role starts 5/1.
- Unrelated to my job, wife and I are expecting our first child this year.
- We are covered separately on our own insurance plans. Her birthday is earlier in the calendar year than mine, so by my understanding the child will initially be covered under her plan, meaning my deductible space in the HDHP won't be touched.

Are my following assumptions correct?

1. Since my plan dates do not overlap, I am eligible to switch from an FSA in my old role to a HDHP with an HSA in my new role. This seems to be the case based on [1]
2. I am eligible to use FSA funds ($260 for the year so far) by the end of April. I'm not going to have any visits but may buy some things on a site like FSAStore [2]
3. Since I am the father and have my birthday later in the calendar year, I will not incur any child-related insurance costs as long as I am not the patient.
4. If we put the child on my wife's insurance plan, I should still consider a HDHP given that I am healthy.
5. Even if we put all three family members on the same insurance plan later in the year, I am still free to open and contribute to a HSA until that time.

Is there anything I'm missing? In your experience, is it worth the additional cost to have all family members on the same insurance plan?

1: https://thecompliancerundown.com/2019/0 ... same-year/
2: https://fsastore.com/
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FiveK
Posts: 11111
Joined: Sun Mar 16, 2014 2:43 pm

Re: New job, does my FSA->HSA reasoning makes sense?

Post by FiveK »

Just checking: if your wife uses a general purpose FSA, that makes you ineligible to use an HSA because by definition a spouse is covered by the other spouse's FSA.
Topic Author
ScaledWheel
Posts: 165
Joined: Sat Jul 23, 2011 8:06 pm

Re: New job, does my FSA->HSA reasoning makes sense?

Post by ScaledWheel »

FiveK wrote: Wed Apr 07, 2021 2:23 pm Just checking: if your wife uses a general purpose FSA, that makes you ineligible to use an HSA because by definition a spouse is covered by the other spouse's FSA.
Good question. I know she has an FSA but will need to check whether or not it is limited. I believe it is general purpose, which would make all this moot. So thank you for pointing that out.
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