Can You Have FSA and HSA? A Comprehensive Guide

Many individuals are often curious about whether they can have both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) at the same time. The short answer is yes, it is possible to have both types of accounts, but with certain limitations and restrictions.

FSAs and HSAs are both tax-advantaged accounts that can help individuals save money on eligible medical expenses. However, there are specific rules governing the interaction between these two accounts:

• Employer FSA and HSA contributions: Employers can contribute to either an FSA or an HSA, but not to both accounts for the same individual in the same year.
• Contribution limits: Individuals can contribute to both an FSA and an HSA in the same year, but there are limits to how much they can contribute to each account.
• Use it or lose it: FSAs operate on a "use-it-or-lose-it" rule, meaning that any funds left unspent at the end of the plan year may be forfeited. On the other hand, HSAs are not subject to this rule, and the funds can roll over year after year.
• Eligible expenses: Both FSAs and HSAs cover a wide range of eligible medical expenses, but it's essential to be aware of any variations in what each account considers as qualifying expenses.

Before deciding to have both an FSA and an HSA, individuals should carefully review their eligibility, contribution limits, and the rules governing these accounts to make the most of the tax benefits and savings opportunities.

Curious about managing your healthcare expenses? You can absolutely keep both an FSA and an HSA, just remember that they have distinct rules that could affect how you use them.