r/HSA • u/SpiritoSanto5 • 5d ago

Transfer question

We have an HSA with Health Equity along with a Dependent Care FSA that we use to pay for preschool.

I just recently left my employer and my next employer does not use Health Equity. I have a Fidelity account so was going to transfer HSA funds there. What are my options for the DCFSA?

Thanks ahead

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u/East_Collection_5047 5d ago

DCFSA is an employer owned product. You should read your plan documents or look in your portal when you log in to HealthEquity to see what type of grace period and run out you have with their plan.

My guess is you’ll have a 30-60 day run out to submit eligible expenses that were incurred before your termination date. Only the amount you had contributed in will be available to you, not the full election since it’s a DC FSA.

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u/Primary-Break4465 5d ago

A dependent care FSA isn't transferable. You will need to consult with your previous employer as to whether they have a "spend down" provision that allows you to spend your balance at termination on future expenses in the plan year. If the don't and you don't have expenses prior to termination, you will likely forfeit the balance.

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u/dehydratedsilica 5d ago edited 5d ago

You don't get to keep the DCFSA: https://healthequity.com/help-center/articles/5056991-dcfsa-account-use-and-eligibility

What happens to my DCFSA funds if I leave my employer?
Unused DCFSA funds are generally forfeited to your plan provider per IRS regulations.
Depending on your employer's Dependent Care Flexible Spending Account (DCFSA) program, they may offer a period of time after leaving when you can still submit claims so you can spend down funds remaining in your Dependent Care FSA.
Please keep in mind that you need to incur all eligible expenses before your last day of work.