Can I Have a Dependent Care FSA and HSA?

One common question many individuals have is whether they can have a Dependent Care FSA and HSA at the same time. The answer is yes, it is possible to have both accounts, but there are some important details to keep in mind.

A Dependent Care FSA (Flexible Spending Account) is used for qualifying dependent care expenses, such as daycare, preschool, or summer day camp for children or elderly care. On the other hand, an HSA (Health Savings Account) is designated for healthcare expenses that are not covered by insurance.

It's important to note that while you can have both accounts, there are specific rules and limitations to consider:

• You cannot use funds from your HSA to pay for dependent care expenses covered by your Dependent Care FSA.
• You can, however, use Dependent Care FSA funds to pay for qualified dependent care expenses while still contributing to your HSA for healthcare expenses.
• The total contribution limit for a Dependent Care FSA is $5,000 per year per household, while for an HSA, the limit for 2021 is $3,600 for individuals and $7,200 for families.

By understanding the rules and limitations of each account, you can maximize the benefits of having both a Dependent Care FSA and HSA to cover a wide range of healthcare and dependent care expenses.

Many individuals wonder if they can juggle both a Dependent Care Flexible Spending Account (FSA) and a Health Savings Account (HSA) simultaneously. The answer is a resounding yes! While these accounts serve different purposes—helping with dependent care and medical expenses respectively—it's crucial to stay informed about their specific regulations.