Can You Do a Flex Spend and an HSA in 2018?

Are you confused about whether you can use both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) in 2018? The short answer is 'No.' But there's more to the story, so let's break it down!

FSAs and HSAs are both tax-advantaged accounts that can help you save money on medical expenses. Here's a quick overview of each:

• Flexible Spending Account (FSA): You can contribute pre-tax dollars to an FSA to pay for eligible medical expenses. The downside? You may lose any unused funds at the end of the plan year.
• Health Savings Account (HSA): You can also contribute pre-tax dollars to an HSA, but the funds roll over from year to year. HSAs are available only to individuals with high-deductible health plans.

So, can you have both accounts at the same time? Here's the catch: If you have an FSA, you can't contribute to an HSA at the same time. However, you can have an HSA and a Limited-Purpose FSA, which can only be used for eligible dental and vision expenses.

It's essential to understand the rules and restrictions of each account to make the most of your healthcare dollars. Consult with your benefits administrator or financial advisor to determine the best option for your situation.

Are you perplexed about the possibility of utilizing both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) in 2018? The answer is a definitive 'No.' However, let’s delve deeper into the details to clear the fog surrounding these accounts!

Both FSAs and HSAs are tax-advantaged accounts designed to assist you in saving for medical expenses, but they come with distinct features. Here’s a closer look:

• Flexible Spending Account (FSA): By contributing pre-tax dollars to an FSA, you can effectively pay for eligible medical costs. Just remember, unused funds typically disappear at the end of the plan year, which can leave you in a scramble!
• Health Savings Account (HSA): Similar to an FSA, an HSA allows you to contribute pre-tax dollars. The magic here is that the funds roll over, meaning you won’t lose your hard-earned money if you don’t use it within the year. Eligibility is limited to those enrolled in high-deductible health plans.

Now, let’s address the million-dollar question: Can you maintain both accounts simultaneously? Here’s the twist: if you have an FSA, you’re not permitted to contribute to an HSA at the same time. However, there’s a silver lining—you can pair an HSA with a Limited-Purpose FSA, which exclusively covers eligible dental and vision expenses.

Understanding the specific rules and limitations of each account is crucial for optimizing your healthcare savings. To navigate these waters effectively, consider seeking advice from your benefits administrator or a financial professional tailored to your particular situation.