Can I Contribute to a HSA If My Company Offers a FSA?

Many people wonder if they can contribute to a Health Savings Account (HSA) if their company offers a Flexible Spending Account (FSA). The short answer is yes, you can contribute to an HSA even if your employer offers an FSA. However, there are some important details to consider.

Key Points to Note:

• You can have both an HSA and an FSA, but there are limitations on how funds can be used.
• If you have a High Deductible Health Plan (HDHP), you are eligible to contribute to an HSA.
• Contributions to an HSA are tax-deductible, whereas FSA contributions are pre-tax but do not roll over from year to year.
• You cannot use FSA funds to pay for HSA-qualified expenses.
• Employers may offer both accounts as part of a benefits package to allow employees more flexibility in managing healthcare expenses.

Overall, having both an HSA and an FSA can provide you with greater flexibility in covering medical costs, as long as you understand the rules and limitations of each account.

It's common for people to ask whether they can contribute to a Health Savings Account (HSA) if their workplace provides a Flexible Spending Account (FSA). The answer is a resounding yes! You can contribute to both accounts, but it’s important to be aware of the specific regulations governing each.