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re: HSA Tax Deduction Question

Posted on 2/5/24 at 11:58 am to
Posted by lighter345
Member since Jan 2009
11867 posts
Posted on 2/5/24 at 11:58 am to
No to hijack but…my wife has a HDHP eligible plan but the employer provides $250 in the form of an FSA. My understanding is that you cannot have an HSA and FSA at the same time.

Can I direct her employer not to provide the FSA benefit so she can start an HSA? We also have a child on her account. We would like to fund this and allow it to grow and pay health care out of pocket.

The employer is not very helpful in all of this and doesn’t understand why we don’t want the FSA benefit.
Posted by slackster
Houston
Member since Mar 2009
85191 posts
Posted on 2/5/24 at 12:15 pm to
I highly doubt the employer will stop for a single employee, but if that’s the only thing holding you back, it’s worth continued pressure.
Posted by Lightning
Texas
Member since May 2014
2302 posts
Posted on 2/5/24 at 1:43 pm to
Check if the FSA is a limited purpose or dependent care FSA. You can have those while also having an HSA, just not a healthcare FSA.

It would be kind of odd for the employer to contribute to a healthcare FSA, negating the much larger benefits of an HSA for their employees.
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