Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Pioneer
Posts: 1
Registered: ‎08-02-2017

Previous employer offered FSA and new employer offers HSA

I changed jobs this year and my previous employer offered a FSA and my new employer offers a HDCP with a HSA.

I contributed to my previous employers (medical) FSA.  Those benefits (and FSA funds) expired on 7/31 this year.


Am I eligible to contribute to the HSA my new employer offers since the enrollment dates will not overlap, or do I have to wait until the enrollment for the next plan year (both plan years match the calendar year) to setup and contribute to the HSA?

 

Thanks in advance!

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Tax Pro
Posts: 5,615
Registered: ‎02-23-2016

Re: Previous employer offered FSA and new employer offers HSA

Hi front,

 

Welcome to the H&R Block community.

 

Yes, you are eligible to contribute to the HSA for the months that you had the HSA and a high deductible health plan but did not have other types of coverage.  Since the HSA will be the only plan you'll be enrolled in once you start it I don't see any issue there.  In fact, under the last month rule, if you are eligible to contribute to an HSA for December (as of December 1st, 2017) then you are automatically eligible for the entire year provided that you remain eligible to contribute to an HSA for the entire following year (ending on December 31st, 2018).

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)