Frequently Asked Questions

How does the grace period affect HSAs?
02/10/2017
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A participant with a year-end balance under a healthcare flexible spending account (FSA) is ineligible for health savings account (HSA) contributions until the first calendar month after the grace period ends (e.g., April 2016, in the case of a January 1, 2016 through March 15, 2016 grace period). The same is true for the participant's spouse, if the spouse's medical expenses are eligible for reimbursement from the healthcare FSA.

A participant with a $0 plan year-end balance under a healthcare FSA who is otherwise HSA-eligible will be eligible for HSA contributions on the first of the month following the end of the plan year (e.g., January 2016, in the case of a January 1, 2015 through December 31, 2015 plan year).