HSA/FSA Rules & Regulations

Contributing to a Health Savings Account (HSA) or Flexible Spending Account (FSA) in addition to an Idaho MSA is perfectly fine, and many people do this.  It is important to note, however, that anything you or your spouse contribute to either of those additional tax-deferred healthcare accounts needs to be counted towards your annual contributions into an Idaho MSA.  

Here is a practical example of each, to help explain this better:

Health Savings Account:

If you or your spouse have a Health Savings Account (HSA), whatever you put into the HSA counts towards your annual contributions to an Idaho MSA.

Example:  

  • You and your wife have an HSA, and you file a joint income tax return.  You put $2,000 into your HSA this year.
  • Typically, you would be eligible to deposit $20,000 per year into an Idaho MSA.  This is based on your "joint" tax filing status.
  • But, because you put $2,000 into your HSA, you can only put $18,000 that year into your Idaho MSA.  The contributions from both accounts (HSA and Idaho MSA) are totaled together.
     

Flexible Spending Account:

If you or your spouse have a Flexible Spending Account (FSA), whatever you put into the FSA counts towards your annual contributions to an Idaho MSA.

Example:  

  • You and your wife have an FSA, and you file a joint income tax return.  You put $2,000 into your FSA this year.
  • Typically, you would be eligible to deposit $20,000 per year into an Idaho MSA.  This is based on your "joint" tax filing status.
  • But, because you put $2,000 into your FSA, you can only put $18,000 that year into your Idaho MSA.  The contributions from both accounts (FSA and Idaho MSA) are counted together.

We ask for this information on the application so we can both track and alert you when you may be nearing a threshold that could cause you to over-contribute, based on the additional accounts you indicate you are maintaining.  We do this to proactively help our members stay compliant within the taxation regulations.  Ultimately however, this compliance is the account holder's responsibility to maintain.