Webinar Follow-Up: Your Top Questions Answered

Thank you to everyone who joined our recent HSA Overview webinar! During the session, we walked through best practices for managing Health Savings Accounts and answered several common—and often tricky—questions about HSA eligibility and contributions.

Q: If I am dual-enrolled in medical plans, one HDHP and one PPO, can I contribute to an HSA? 

A: If an employee is covered under both a High Deductible Health Plan (HDHP) and a PPO, their HSA eligibility depends on which plan is primary. If the HDHP is primary and the PPO only pays after the HDHP deductible is met, the individual can still contribute to an HSA. However, if the PPO plan pays first or pays out before the HDHP deductible is met, HSA eligibility is lost. 

Q: What are the rules with a QSEHRA from a partner's plan and HSA eligibility? 

A: The same rules apply: if the QSEHRA pays before the HDHP deductible is met, it disqualifies the participant from contributing to an HSA.

Q: If a spouse is enrolled in an FSA, can the other spouse participate in an HSA?

A: You cannot enroll in an HSA if your spouse is enrolled in a general-purpose Health Flexible Spending Account (FSA) because the FSA is considered disqualifying "other health coverage."

Q: If a pay date is late in December, do we need to stop all contributions to avoid incorrect W-2s for the calendar year, or should we add the final contributions to the prior paycheck? 

A: To ensure accurate W-2 reporting, you should time your contributions so that your HSA deposits are processed within December, typically allowing three to five business days for funding. If there's any uncertainty, we recommend reaching out to your Client Relationship Manager in advance to ensure your contributions are recorded in the correct tax year.