HSA vs. Health FSA

[lessel]

I've called my HR benefits line and it wasn't helpful, so I figured I would try here. I *think* I understand this, but basically just want to be sure I'm not missing something.

I have a dependent care FSA through my employer. My health insurance (medical, dental, vision) is through my husband (a great PPO plan--decent deductibles, low premiums). 

Am I reading everything correctly that that makes me ineligible for a HSA? These are only open to people with only a high-deductible plan, right? 

I'm likely to go the route of a health FSA through my employer...but seems that can only roll over $500 from one year to the next. I was hoping to use a HSA to save up for things like Lasik surgery and just generally build a bit of a health e-fund. But seems like that's not do-able.

Do I have this straight or am I missing something?

[tealblue]

It sounds right. There are guidelines for having a qualified HDHP and I think the family deductible would be $2600 at a minimum.

[Mrs.flang]

I think you are right. We have the same situation. My company has a high deductible plan and offers an HSA for people enrolled in that. But I am under my H's insurance, so I can only contribute to the health FSA and the dependent care account offered here.

[minionkevin]

Yes, that’s right. You can do one eye of LASIK on 12/31 and use your $2650 of funds and then the other eye on 1/2 with the new year’s funds. You get the full amount up front, it’s not like the DCFSA where you can only get reimbursed what you have accrued so far.
And if your employer turned around and offered an HSA-compatible plan, and you enrolled in it, you could only contribute to the HSA, not the health FSA, unless it was a limited purpose FSA (dental and vision only). Your H could not contribute to an FSA at all, either.

[lessel]

Nov 19, 2018 11:53:50 GMT -5 minionkevin said:

Yes, that’s right. You can do one eye of LASIK on 12/31 and use your $2650 of funds and then the other eye on 1/2 with the new year’s funds. You get the full amount up front, it’s not like the DCFSA where you can only get reimbursed what you have accrued so far.
And if your employer turned around and offered an HSA-compatible plan, and you enrolled in it, you could only contribute to the HSA, not the health FSA, unless it was a limited purpose FSA (dental and vision only). Your H could not contribute to an FSA at all, either.

I think mine actually is like the dependent FSA. In looking online it's making me select an amount to deduct per paycheck. 

[minionkevin]

Nov 19, 2018 11:57:50 GMT -5 lessel said:

Nov 19, 2018 11:53:50 GMT -5 minionkevin said:

Yes, that’s right. You can do one eye of LASIK on 12/31 and use your $2650 of funds and then the other eye on 1/2 with the new year’s funds. You get the full amount up front, it’s not like the DCFSA where you can only get reimbursed what you have accrued so far.
And if your employer turned around and offered an HSA-compatible plan, and you enrolled in it, you could only contribute to the HSA, not the health FSA, unless it was a limited purpose FSA (dental and vision only). Your H could not contribute to an FSA at all, either.

I think mine actually is like the dependent FSA. In looking online it's making me select an amount to deduct per paycheck. 

Yes, but the amount you elect annually is available to you on day one.
(I used to work in the health insurance industry)

[lessel]

Nov 19, 2018 11:59:05 GMT -5 minionkevin said:

Nov 19, 2018 11:57:50 GMT -5 lessel said:

I think mine actually is like the dependent FSA. In looking online it's making me select an amount to deduct per paycheck. 

Yes, but the amount you elect is available to you on day one.
(I used to work in the health insurance industry)

Interesting. Thanks for this!

[sadlebred]

As far as I'm aware with a FSA, you must use all of the funds in the same year as the contribution. So, you can't roll over any unused funds into the 2019 FSA. They have to be used by Dec. 31, 2018. Unused funds are forfeited. You can submit claims for FSA money from 2018 until March 31, 2019(?).

[minionkevin]

Nov 19, 2018 18:15:01 GMT -5 sadlebred said:

As far as I'm aware with a FSA, you must use all of the funds in the same year as the contribution. So, you can't roll over any unused funds into the 2019 FSA. They have to be used by Dec. 31, 2018. Unused funds are forfeited. You can submit claims for FSA money from 2018 until March 31, 2019(?).

There are new rules which allow up to a $500 rollover, but the employer has to elect it.