Setting up an HSA, via a FSA Plan.

Jan 11, 2007

  1. salpro22

    salpro22 Guru

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    The upcoming qustion pertains to an individual in CT.

    Jane (fake name) works for a hospital up in CT and can elect to fund a FSA through her employer. I looked over the SPD and it is unclear to me exactly what type of group plan they have because the literature mentions a Medical Reimbursement Savings Account (I imagine this is a HRA) and a Flexible Savings Account (FSA).

    The SPD stipulates that they offer a HRA combined with a FSA, w/ a "use it or lose it" stipulation. As an employee, if I knew how much money I was going to use in the upcoming year and funded the FSA the use or lose it wouldn't really matter. However, funding a FSA and losing that money, which I assume goes to the employer is not entirely smart.

    Can a individual set up an HSA via the money used to fund the FSA or HRA and have the employer contribute as well? If so, how does a person go about doing that?

    Your thoughts are greatly appreciated.
    salpro22, Jan 11, 2007