Can You Contribute to Both HSA and Dependent Care FSA?

Health Savings Accounts (HSAs) and Dependent Care Flexible Spending Accounts (FSAs) are popular options for saving on healthcare and dependent care expenses. But can you contribute to both HSA and Dependent Care FSA?

The short answer is yes, but with some limitations and rules to follow.

Here's what you need to know:

• Contributions to HSA and Dependent Care FSA are separate and cannot be combined together.
• While you can contribute to both accounts, it's essential to be mindful of their individual contribution limits.
• For 2021, the contribution limit for an HSA is $3,600 for individuals and $7,200 for families. On the other hand, the Dependent Care FSA contribution limit is $5,000 per year per household.
• Contributions to an HSA are tax-deductible, grow tax-free, and withdrawals are tax-free when used for qualified medical expenses.
• Dependent Care FSA contributions are also tax-free, but can only be used for eligible dependent care expenses, such as child daycare or elderly care.
• If you have both an HSA and Dependent Care FSA, you can maximize your tax savings by contributing to both accounts to cover different types of expenses.
• Keep in mind that contributions to a Dependent Care FSA are
  

  Health Savings Accounts (HSAs) and Dependent Care Flexible Spending Accounts (FSAs) each have their unique benefits, and understanding how they can work together can lead to significant savings. You can indeed contribute to both an HSA and a Dependent Care FSA, but you need to be aware of the specific guidelines that come with each.