Can You Have Both an FSA and HSA in the Same Year?

Many people wonder if they can have both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) in the same year. The short answer is - it depends on the type of FSA and HSA you have.

If you have a Limited-Purpose FSA which covers only dental and vision expenses, you can have both an FSA and HSA in the same year without any issues. However, if you have a general Health FSA, you are not eligible to contribute to an HSA in the same year.

It's essential to understand the rules and regulations regarding FSAs and HSAs to make informed decisions about your healthcare savings options. Here are some key points to consider:

• General Health FSA and HSA are not compatible in the same year due to IRS regulations.
• Limited-Purpose FSA, which covers only dental and vision expenses, can be paired with an HSA.
• HSAs offer triple tax benefits - contributions are tax-deductible, earnings are tax-free, and withdrawals for qualified medical expenses are tax-free.
• FSAs are pre-tax accounts that can be used for eligible healthcare expenses but do not offer the same long-term tax benefits as HSAs.

Ultimately, it's crucial to consult with a financial advisor or benefits specialist to determine the best healthcare savings strategy for your specific needs and circumstances.

Curious about whether you can juggle both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) in the same year? The answer can vary based on the specifics of your situation.