Can I Accept HSA & FSA Plans? Your Guide to Understanding Health Savings and Flexible Spending Accounts

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are two popular ways to save money for healthcare expenses, but can you use both at the same time?

When it comes to HSA and FSA plans, the short answer is: it depends. Here’s a breakdown to help you understand:

Health Savings Account (HSA)

- A personal account that allows you to save pre-tax money for medical expenses

- Available to individuals enrolled in a high-deductible health plan (HDHP)

Flexible Spending Account (FSA)

- An account that allows you to set aside pre-tax money for eligible medical expenses

- Typically offered by your employer

Can You Have Both?

- You cannot have both an HSA and a general-purpose FSA at the same time

- You can have a limited-purpose FSA along with an HSA if it only covers dental and vision expenses

Benefits of HSAs and FSAs

- Tax advantages: Contributions are tax-deductible for HSAs and exempt from taxes for FSAs

- Save for the future: Funds in HSAs roll over year after year, while FSAs have a

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are essential financial tools that allow you to save for eligible healthcare expenses. Understanding the nuances of these accounts can help you make informed decisions about your health care financing.