Can You Pay into FSA and HSA? A Comprehensive Guide

Have you found yourself wondering whether you can pay into both an FSA (Flexible Spending Account) and an HSA (Health Savings Account)? You are not alone! Understanding the rules and differences between these two accounts can be confusing, but fear not, we are here to help guide you through it.

It is important to note that you cannot contribute to both an FSA and an HSA at the same time, as they have different regulations and purposes. Here are the key differences between the two:

• An FSA is offered by your employer and is funded through pre-tax payroll deductions. The funds can be used for qualified medical expenses, but the balance does not roll over at the end of the year (with some exceptions).
• An HSA, on the other hand, is a savings account that you can contribute to if you have a high-deductible health plan. The contributions are tax-deductible, grow tax-free, and can be used for qualified medical expenses at any time.

Now, let's address the question at hand: Can you pay into both an FSA and an HSA? The short answer is no, but there is a workaround if you have both accounts available to you:

• If you have an FSA and are eligible for an HSA, you can still have both accounts, but with some limitations:
• If you have an HSA, you can have a Limited-Purpose FSA, which can only be used for dental and vision expenses or post-deductible medical expenses.

It is essential to talk to your employer or a financial advisor to understand the specific rules and options available to you based on your individual circumstances. Remember that both FSAs and HSAs offer valuable tax advantages and can help you save money on medical expenses.

Wondering whether you can reap the benefits of both an FSA (Flexible Spending Account) and an HSA (Health Savings Account)? You're not alone, and we're here to clarify the rules and help you determine the best path for your healthcare savings!