What do the terms Limited Purpose and/or Post Deductible mean related to a HSA?
Revenue Ruling 2004-45 specifically addresses how a Health Flexible Spending Account impacts an individual’s eligibility for a Health Savings Account. An otherwise qualified individual cannot establish a HSA if said individual (or individual’s spouse) is covered under a General Purpose Health FSA. A general purpose Health FSA is one that reimburses most unreimbursed expenses pursuant to Section 213(d) of the Internal Revenue Code.
