Group FSA/Individual HSA

[kgmom219]

I have a new group that currently offers group health and an FSA. There is no employer contribution to the FSA.

On January 1, this group is dropping the employer health plan. Many of the employees are interested in HSA compliant individual plans.

They also want to keep the group FSA plan in place.

Any thoughts? Is it legal?

 

[somarco]

There are different kinds of FSA's, so yes, you can have an FSA even if you don't have a group health plan. The rules have changed under Obamacare. Might want to brush up.

Publication 969 (2013), Health Savings Accounts and Other Tax-Favored Health Plans

https://www.healthcare.gov/can-i-use-a-flexible-spending-account-fsa/

Flexible Spending Accounts

New Healthcare Flexible Spending Account Rules For 2013, Use-It-Or Lose-It Still Undecided - Forbes

 

[kgmom219]

There are different kinds of FSA's, so yes, you can have an FSA even if you don't have a group health plan. The rules have changed under Obamacare. Might want to brush up.

Publication 969 (2013), Health Savings Accounts and Other Tax-Favored Health Plans

https://www.healthcare.gov/can-i-use-a-flexible-spending-account-fsa/

Flexible Spending Accounts

New Healthcare Flexible Spending Account Rules For 2013, Use-It-Or Lose-It Still Undecided - Forbes

Can't I just continue to say "You need to have this administered by Guardian, since they do it for free with your ancillary coverage"?

I actually don't believe in FSA's for groups with less than 20 employees. Too much risk. But its a church, so they do their own thing.

Most importantly...THANK YOU for the info!