Using the FSA with HSA Plans

A Section 125 plan like the CSI Flexible Benefits Plan can be used to pay for premiums and dependent care expenses on a pre-tax basis for all of CSI’s health plans, including a High Deductible Health Plan used with a Health Savings Account (HSA).
The Health FSA may be used for expenses not reimbursed through another plan. For a High Deductible Health Plan with an HSA component, however, reimbursement is limited to dental and vision expenses. There is a significant issue for participants in a High Deductible Health Plan with an HSA: even if the expense applies to the deductible, unless it is a dental or vision expense, is not eligible for reimbursement from the Health FSA.
The CSI Flexible Benefits Plan may also be used for pre-tax employee contributions to a Health Savings Account associated with a High Deductible Health Plan. You are permitted to contribute to your HSA using one of these two methods: you may contribute on a pre-tax basis through the CSI Flexible Benefits Plan, or contribute post-tax and claim the credit on your federal income tax return.

Full Issue: No. 62 - April 2011

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