What Happens If I Contribute to HSA and FSA?

When it comes to saving for healthcare expenses, both Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can be valuable tools. However, it's crucial to understand the implications of contributing to both accounts simultaneously.

Contributing to both a Health Savings Account (HSA) and a Flexible Spending Account (FSA) can lead to several complications:

• Double-dipping: You cannot use funds from both accounts for the same expense.
• Excess contributions: Contributing more than the annual limits set by the IRS can result in penalties.
• Loss of eligibility: Contributing to an FSA can disqualify you from being eligible to contribute to an HSA.

It's essential to carefully consider your healthcare needs and financial situation before deciding to contribute to both an HSA and an FSA simultaneously.

When it comes to saving for healthcare expenses, both Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can be valuable tools, but they each have unique rules and benefits that can complicate your financial planning.