Can You Have an HSA and Limited Purpose FSA?

Are you considering signing up for both a Health Savings Account (HSA) and a Limited Purpose Flexible Spending Account (FSA), but unsure if it's allowed? Let's dive into whether you can have both accounts simultaneously.

Firstly, it's crucial to understand the basics of HSA and Limited Purpose FSA:

• HSA: A tax-advantaged savings account that is used in combination with a high-deductible health plan to cover medical expenses.
• Limited Purpose FSA: An FSA that allows you to pay for eligible dental and vision expenses.

So, can you have both HSA and Limited Purpose FSA at the same time? The answer is yes, but with a few conditions:

• You can have an HSA and a Limited Purpose FSA simultaneously, but the FSA must be limited to only dental and vision expenses.
• You cannot have a general Healthcare FSA along with an HSA as it would violate IRS rules.
• Having both accounts can provide additional tax advantages and flexibility in covering various medical and dental/vision expenses.

It's important to consult with your employer or benefits administrator to ensure you are following all guidelines and maximizing your healthcare savings potential.

Are you contemplating having both a Health Savings Account (HSA) and a Limited Purpose Flexible Spending Account (FSA)? You're not alone in this consideration. Let's clarify the regulations around having these accounts together.

First, let's go over what each of these accounts entails:

• HSA: This is a tax-advantaged savings option that works with a high-deductible health plan, allowing you to set aside money for qualifying medical expenses.
• Limited Purpose FSA: Typically limited to specific categories, this FSA allows you to pay for eligible expenses related to dental and vision care.

Now, can these two accounts coexist? Indeed, they can! However, here are a few points to keep in mind:

• Your Limited Purpose FSA must only cover dental and vision expenses if you want to maintain your HSA.
• A general Healthcare FSA cannot be paired with an HSA, as this would contradict IRS regulations.
• Utilizing both accounts can lead to enhanced tax benefits and a wider array of options for managing healthcare costs, adding a layer of savings whether you're seeking vision exams or dental cleanings.

Always consult your employer or benefits administrator to navigate eligibility and ensure you are maximizing your healthcare savings effectively.