yeah pretty sure you all just confirmed what i thought.
wonder if there is anyway i can get them to not give me the 500 bucks.
Suspended HRA. Before the beginning of an HRA coverage period, you can elect to suspend the HRA. The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage . When the suspension period ends, you are no longer eligible to make contributions to an HSA.
To me this reads as you could still use the 500 given to you by you're company, but anything outside of "except preventive care and items listed under Other health coverage" would have to be covered by you.
If I've read this correctly, I had the same issue this year, except flipped - I tried to suspend my HSA during a period when we were contributing to my husband's HRA/FSA, which had a contract-related June termination date. After it terminated, I resumed contributions to our HSA, which I was hoping to max this year.
It turns out that I all did was terminate MY contributions to the HSA during the FSA period, but my employer was still putting in 125/month. HR told me that they couldn't stop those contributions. What I did was withdraw those contributions (plus interest earnings) from the overlap period, and I will treat it like taxable income on my return. Hopefully that solves the problem??
I'd like to think that shouldn't matter because the FSA funds went to my lasik, which isn't covered in any part by my HDHP or counted in any way toward my deductible.