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FSA reimbursement question

722 Views | 2 Replies | Last: 3 yr ago by Casey TableTennis
62strat
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AG

I have $750 a year I put towards FSA through my employer for medical.

It is the kind that is use it or lose it. So when it comes time to get the last dollar our of it, sometimes I have say a $300 medical bill, but my balance remaining to reimburse is only $150. So I can only claim/reimburse $150 of that bill to get back all my FSA contributions..

Question is, can I still claim/reimburse the remaining $150 through my wife's HSA? I assume I can, but is this a tax/record keeping nightmare or not?

One bill being use to reimburse out of two separate tax free vehicles.

I plan to let HSA grow over the years and keep EOBs/receipts for qualified purchases. So I'm just wondering how in the world the gov or anyone would know that I already got reimbursed through an FSA for this bill that is 10 years old. Whether I do it honestly (only reimburse half decades later) or not (reimburse the whole amount again decades later)
GE
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AG
Are you allowed to have both a medical FSA and an HSA? For some reason I was under the impression it's not allowed but couldn't for a second tell you why I think that.
62strat
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AG
well the hsa is my wife's through her employer. FSA is through mine, I do daycare and medical...

So you're saying the medical portion of my fsa may not be allowed if wife has hsa? I don't see why it would matter, as we are not reaching the max on either one ($500 on one, $750 on the other).

Would it make more sense to just combine them and do $1250 out of HSA? Can I still do fsa for daycare?
Casey TableTennis
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AG
Yes you can do both, the way you described. Given you aren't reaching the individual max on her HSA, it would probably be easier to just put all of your annual contribution on that and skip the medical FSA. Independent of this you can still to the DCRA (dependent care reimbursement account).

If there is a company contribution to the medical FSA, that could change what I said above.

An alternative to double reimbursing is contribute less next year. Your cash flow ends up in the same place over the two years, other than the taxes on $150.
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