Tuesday, October 2, 2007

HSA vs. FSA accounts - Reimbursable Expenses

From 2008 Medical Benefits Overview:

If you have both an HSA and an FSA — and you want
to make tax-advantaged contributions to your HSA —
your FSA must be converted to a “limited” health care
FSA, one that reimburses only eligible dental, vision and
preventive care expenses not covered by the medical
plan. (In other words, a “limited” health care FSA
cannot be used to pay for nonpreventive medical
care and services.)

KHP - So any medical preventive care. Not so clear about dental and vision although preventive dental and vision care are good bets for being covered by the limited FSA.

Reading a bit from IRS Publication 969, one can only contribute up to the annual health plan deductible but not more than $5450 (Benefits Update says $5650). My deductible seems to be $2200. So, I can only increase potentially from $1650 to $2200.

More from 969:
Other Health Coverage
You can also have coverage (whether provided through
insurance or otherwise) for the following items.
  • Accidents
  • Disability
  • Dental Care
  • Vision Care
  • Long Term Care
Limited-purpose health FSA or HRA. These arrangements can pay or reimburse the items listed earlier under Other health coverage, except long-term care. Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible.

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