Tag: tax-favored accounts

From the Hotline: FSA and HSA

May an employer permit a flexible spending account (FSA) carryover amount to be transferred into a limited-purpose flexible spending account (LPFSA) when adopting a health savings account (HSA)? As stated by the IRS and released March 28, 2014, “An individual who participates in a general purpose health FSA and elects, for the following year, to…

Question: If a person has a balance in their health savings account (HSA) when he or she moves to a point of service (POS) plan with a flexible spending account (FSA), can the person continue to use HSA funds while on the POS plan? Answer: Yes, employees are allowed to continue to use the remaining funds in…