Can an HSA be Used in Addition to a Flexible Spending Account?

If you're navigating the world of healthcare benefits, you might be wondering whether you can use a Health Savings Account (HSA) in addition to a Flexible Spending Account (FSA). The short answer is yes, you can have both an HSA and an FSA, but there are some limitations and things to consider.

An HSA and an FSA are both tax-advantaged accounts that can help you save money on qualified healthcare expenses. Here's how they differ:

• HSA: Must be paired with a high-deductible health plan, contributions are tax-deductible, and funds can be rolled over year after year.
• FSA: Does not require a specific type of health plan, contributions are pre-tax, but funds must be used by the end of the plan year or you'll lose them.

While you can have both accounts, there are some rules to keep in mind:

• You cannot contribute to both an HSA and a general-purpose FSA in the same year.
• If you have an HSA, you can still have a limited-purpose FSA for dental and vision expenses.
• If you have an FSA, you can use it to pay for qualified medical expenses not covered by your high-deductible health plan until you meet your deductible.

It's essential to evaluate your healthcare needs and expenses to determine the best combination of accounts for your situation. Consulting with a benefits or financial advisor can also help you make informed decisions.

Did you know that having both a Health Savings Account (HSA) and a Flexible Spending Account (FSA) can provide you with greater flexibility in managing your healthcare expenses? An HSA allows you to save for medical expenses with tax-free dollars and offers the benefit of carrying over any unused funds each year.