You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

You can have both types of accounts, but only under certain circumstances. General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) HRA, then you can still be eligible for an HSA.

You can have both types of accounts, but only under certain circumstances. General Flexible Spending Arrangements (FSAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) FSA, then you can still be eligible for an HSA.

Yes. However, the IRS requires your employer to determine which account is used first ? your FSA or HRA. For example, your employer may decide that your FSA funds are to be used first. Your HRA funds will not be used until all the money is spent from your FSA. Or, your employer may decide the HRA is to be used first. Please see your employer's plan documents for more information.

You can participate in an HSA and a Health FSA, however, the Health FSA can only reimburse Vision and Dental expenses (does not include over-the-counter items). This is referred to as a "Limited Flex Account." You are not required to submit receipts in order to receive funds from your HSA. You should keep those receipts for your records to show that the distribution was for eligible medical expenses.

If your spouse has an HSA family plan and you have an HSA family plan, and either of you are covered under the other's plan, both of your HSA contributions are limited to whichever plan has the lower annual HSA contribution maximum. If you have a family plan and your spouse has an individual plan, or vice versa, the deductible used to determine the HSA contribution maximum is the highest one.

According to IRS Rev Ruling 2004-45 an HSA can only be used with a Limited Purpose HRA, which reimburses for permitted insurance, vision, dental, and preventive care.

much or as little as you want (while staying below the legal limit on the account of $2,850 for employees with self-only coverage or $5,650 for employees with family coverage in 2007).

As much or as little as you want (while staying below the legal limit on the account of $2,850* or $5,650* for employees with family coverage). *These amounts are for 2007. They are indexed annually for inflation.

Great news! Effective January 1, 2007, the rules now allow greater employer contributions for lower-paid employees. Previously, employer contributions under the comparability rules had to be the same amount or percentage of the deductible for all employees with the same category of coverage. Consequently, employers could not contribute higher amounts to lower-paid employees.

Yes, contributions can be made by both you and your employer. Just keep in mind that all deposits count towards the maximum annual contribution.

You generally can't deduct your medical and dental expenses, since they are deductible only to the extent they exceed 7.5% of your Adjusted Gross Income. But you can effectively get a deduction for these items if your employer offers a Flexible Spending Account (FSA), Health Savings Account or cafeteria plan. These plans permit you to redirect a portion of your salary to pay these types of expenses with pre-tax dollars.

A Health Savings Account (HSA) is an investment account from which you can draw money tax-free for medical care. HSAs are owned by the individual and grow through investments, similar to an IRA. HSAs have favorable tax treatment for contributions, distributions and earnings. They are available to individuals covered by a high deductible health plan (HDHP) and can be established to pay for family medical expenses.

Typically an HSA only allows a Federal deduction, however in some states you can deduct the state tax. The HRA is a business expense which allows for a deduction from Federal, State, and FiCA taxes.

The reimbursement limit for an FSA Health Care Plan is established by each employer, so you may each contribute an amount up to your respective employer's plan limit. However, you may only claim reimbursement of each expense from one plan (not the same expense under both plans). The FSA Dependent Care Plan maximum limit is established by the IRS; therefore, you and your spouse may together elect a maximum of $5,000 per plan year for this plan.

Should an employer modify the FSA ? through a plan amendment - to incorporate the grace period, plan participants will be able to apply unused FSA balances for health & dependent care expenses incurred in the first two & one-half months of the following plan year. Once a plan is modified, an employee covered by the FSA grace period cannot contribute to an HSA during that grace period.

If your account equals or exceeds the maximum amount, you will not receive any further employer contributions to the HRA until you are paid benefits that are sufficient to reduce your balance below the maximum. However, you will continue to earn interest based on your account balance.