HSAs and FSAs: can you have both?

HSAs and FSAs: can you have both?

The U.S. Treasury Department has clarified that in certain instances an employee can have a Health Savings Account (HSA) and also participate in a Flexible Spending Account (FSA.) See this press release on the interaction of HSAs with FSAs.

Generally, participation in a Health Savings Account with a high deductible health insurance plan (HDHP) precludes participation in a Flexible Spending Account, however, there is some flexibility.

Specifically, a person participating in an HSA may also participate in a “limited purpose FSA” that restricts reimbursements to some permitted benefits such as vision, dental, or preventive care.

Also, a person with an HSA can participate in a “post-deductible” FSA that limits reimbursements to qualified expenses incurred after the annual medical plan deductible has been met.

Employees who seek to have both an HSA and FSA must ensure that their employer’s FSA has these added features. Generally, without these exceptions an individual can not participate in both and HSA and FSA.

For tax information always rely on an accountant or tax expert. For assistance with health insurance rely on BenefitsCafe.com. Click here for a California health insurance quote or call us at 800-746-0045.

2018-02-04T13:11:26+00:00May 31st, 2006 |Categories: Uncategorized|