Can You Have a Dependent Care FSA and an HSA?

Many individuals wonder if they can have both a Dependent Care Flexible Spending Account (FSA) and a Health Savings Account (HSA) at the same time. The answer is yes, but with some limitations and considerations. Let's delve into the details to understand how these two accounts can work together.

An HSA is a tax-advantaged savings account that individuals can use to pay for qualified medical expenses. On the other hand, a Dependent Care FSA allows you to set aside pre-tax money to cover eligible dependent care expenses, such as daycare, preschool, or after-school care for children.

Here's what you need to know about having both a Dependent Care FSA and an HSA:

• Contributions Limits: HSA contributions have annual limits set by the IRS, while Dependent Care FSA contributions are limited to $5,000 per year per household.
• Usage Restrictions: HSA funds can only be used for qualified medical expenses, whereas Dependent Care FSA funds can only be used for eligible dependent care services.
• Overlap in Expenses: Some expenses, such as certain medical costs for dependents, may be eligible for reimbursement from both accounts. It's essential to keep accurate records and follow IRS guidelines on which expenses can be reimbursed from each account.
• Employer Policies: Check with your employer's benefits department to understand any specific rules or restrictions they may have regarding participating in both accounts simultaneously.

In conclusion, you can have a Dependent Care FSA and an HSA at the same time, but it's crucial to understand the rules and limitations of each account to maximize their benefits effectively.




Having both a Dependent Care Flexible Spending Account (FSA) and a Health Savings Account (HSA) can enhance your financial strategy. While both accounts serve distinct purposes, they can complement each other well in managing your family’s healthcare and dependent care expenses.