Can I Have an FSA and an HSA? What You Need to Know

Many people often wonder if they can have both a Flexible Spending Account (FSA) and a Health Savings Account (HSA). The answer is more nuanced than a simple yes or no, as there are certain rules and limitations to consider.

First, it is important to understand the difference between an FSA and an HSA. An FSA is typically offered by employers and allows you to contribute pre-tax dollars to pay for eligible expenses like copayments, deductibles, and some over-the-counter medications. On the other hand, an HSA is available to individuals with a high-deductible health plan and allows you to save pre-tax dollars for medical expenses not covered by your insurance.

Now, let's delve into whether you can have both an FSA and an HSA:

• If your FSA is a Limited-Purpose FSA that only covers dental and vision expenses, you can have it along with an HSA without any issues.
• If your FSA is a general-purpose FSA that covers a wide range of medical expenses, having it along with an HSA can lead to some restrictions.
• Employers may offer a Limited-Purpose FSA alongside an HSA specifically for dental and vision expenses, which can be a beneficial combination.
• It is crucial to check with your employer or benefits administrator to understand the specific rules and options available to you.

In conclusion, while it is possible to have both an FSA and an HSA, there are limitations and restrictions to consider based on the type of FSA you have. It is recommended to review your options carefully and seek advice from your employer or financial advisor before making a decision.

Wondering if you can hold both a Flexible Spending Account (FSA) and a Health Savings Account (HSA)? You're not alone! Many are in the same boat, eager to leverage savings on healthcare costs. Understanding the intricacies of these accounts can help you make the best choice for your financial future.