Can You Have an HSA and FSA During the Same Plan Year?

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are both popular ways to save for medical expenses and reduce taxable income. But can you have both an HSA and FSA during the same plan year? Let's delve into this common question.

HSAs and FSAs actually serve different purposes and have different eligibility requirements:

• HSAs are only available to individuals enrolled in a high-deductible health plan (HDHP).
• FSAs are available through an employer's benefit plan and do not require enrollment in an HDHP.

So, can you have both accounts during the same plan year?

It's important to note that:

• If you have an HSA, you can have a limited-purpose FSA (for dental and vision expenses only) or a post-deductible FSA (after you've met your HDHP deductible).
• If you have an FSA, you cannot contribute to an HSA concurrently.

Remember these key points:

• HSAs and FSAs have different rules and benefits.
• Having both accounts during the same plan year depends on the type of FSA you have.
• It's crucial to understand your options and choose the best plan for your healthcare needs.

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can be excellent financial tools for managing healthcare costs, but it's essential to know how they interact. While HSAs are designed for those with a high-deductible health plan (HDHP), FSAs are typically offered by employers, making them accessible to a larger group of workers.