Can an FSA be combined with an HSA?
The Limited Purpose or Post Deductible amendment to a Healthcare FSA deals with how the FSA is treated in conjunction with an HSA. Vertical stacking applies. HSA funds must be spent first for medical care until the HSA statutory deductible ($1,200 for an individual and $2,400 for a family in 2010) is satisfied. Once reached, the participant can use Healthcare FSA funds for healthcare expenses. All expenses must be qualified medical, vision, pharmacy or dental benefit expenses as defined in Section 213(d) of the Internal Revenue Code.
Related Questions
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