How does a Medical Reimbursement Account affect the new Health Savings Account (HSAs) established under IRC 223?
The Treasury Department recently addressed this issue in Rev Rul 2004-45. An employee may participate in a medical reimbursement account (FSA) and establish a HSA (assuming all other eligibility requirements are met) as long as the FSA: • Does not reimburse medical expenses before the Deductible is met and/or • Only reimburses for expenses that are not covered under the HDHP (for example: Dental or Vision expenses). Consequentyly, an employee who has eligible medical expenses that exceed the annual Deductible can still receive the tax savings associated with the FSA plans.
Related Questions
- How does a Medical Reimbursement Account affect the new Health Savings Account (HSAs) established under IRC 223?
- Can I keep my health savings account (HSA), flexible spending account (FSA), or health reimbursement account (HRA)?
- Is an HSA the same as a Medical Flexible Spending Account (FSA) or Health Reimbursement Account (HRA)?
