HSA Guide
Can You Have FSA and HSA in the Same Year?
Published December 8, 2022
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Get the appGeneral rule: FSA and HSA together
Many people wonder if they can have both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) in the same year. The answer is, generally, no. However, there are some exceptions and nuances to consider.
If you're navigating the world of healthcare savings, you may have asked yourself: Can I have both an FSA and an HSA in the same year? The short answer is that itâs generally no, but there are some exceptions that could benefit you.
How FSAs and HSAs work differently
FSAs and HSAs are both tax-advantaged accounts that can help you save money on eligible healthcare expenses. Here's a breakdown of how they differ:
- FSAs are usually offered by your employer, and the funds must be used by the end of the plan year or you risk losing them.
- HSAs are individual accounts that you own, and the funds roll over year after year.
Exceptions, tips, and how to use accounts
While you typically cannot have both an FSA and an HSA in the same year, here are some scenarios where it may be possible:
- Limited Purpose FSA: If your employer offers a Limited Purpose FSA for dental and vision expenses only, you can still contribute to an HSA for medical expenses.
- Post-Deductible FSA: Some employers offer an FSA that only covers expenses after you meet your health plan's deductible; in this case, you can have both an HSA and an FSA.
It's essential to understand the rules and restrictions of each account to maximize your healthcare savings and avoid any penalties. If you have the option to have both an FSA and an HSA in the same year, consider the following tips:
- Review your healthcare expenses and choose the account(s) that best fit your needs.
- Take advantage of any employer contributions to your HSA, as this is essentially free money for your healthcare expenses.
- Keep track of your expenses and receipts to ensure you use the funds in each account appropriately.