Can You Use Both an FSA and an HSA?

Many people often wonder 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, but with certain restrictions and considerations to keep in mind.

Both FSAs and HSAs offer tax advantages for healthcare expenses, but there are some key differences between the two that may impact your ability to have both simultaneously.

Here are some important points to consider:

• An HSA requires you to be enrolled in a high-deductible health plan (HDHP), while FSAs do not have this requirement.
• You cannot contribute to both an FSA and an HSA in the same year unless the FSA is limited-purpose or post-deductible.
• If you have both accounts, you need to be mindful of how you use the funds to avoid any tax penalties.

While it is possible to have both an FSA and an HSA, it's essential to understand the rules and limitations to make the most of these healthcare savings vehicles.

Having both a Flexible Spending Account (FSA) and a Health Savings Account (HSA) can be beneficial, but navigating their specific rules is crucial. FSAs are more flexible, allowing you to use funds for a variety of healthcare costs, while HSAs particularly serve those with high-deductible health plans (HDHPs) and provide even greater tax benefits.