For Health Savings Account (HSA) owners, a common question is, “Can I have an FSA and HSA at the same time?”
Generally speaking, you cannot have a health Flexible Spending Account (FSA) and HSA at the same time. However, there are a couple of exceptions: limited purpose FSAs and dependent care FSAs.
The first exception is with a limited purpose FSA (LPFSA). An LPFSA covers only eligible expenses related to dental and vision, and is only available to people who are enrolled in an HSA. Sometimes this type of FSA is referred to as an “HSA Compatible FSA.”
Like a health FSA, the maximum annual contribution amount is the same for an LPFSA (learn more about 2018 FSA contribution limits). LPFSAs also have use-it-or-lose it or the $500 maximum rollover, depending on the employer’s plan.
Contact your benefits administrator or consult IRS publication 502 for a full list of eligible medical and dental expenses.
If you have an HSA and LPFSA, you cannot make a claim through both accounts for the same expense (also known as double-dipping). If you receive reimbursement from your HSA, you cannot file a claim for reimbursement through your LPFSA (and vice versa).
The other exception is a dependent care FSA, also known as a DCAP. A DCAP can be used for pay for the cost of care for dependents under age 13 and for those who cannot care for themselves during the day while you’re working or attending school (such as an elderly parent or child with disabilities).
Any eligible employee can have a DCAP account, regardless of whether they have an HSA or healthcare FSA, as long as their employer sponsors the account. The maximum annual contribution limit for a DCAP is $5,000.
Consult with your benefits administrator for a full list of DCAP eligible expenses.
Talk to your claim administrator about claims filing and reimbursement. Some TPAs offer a recurring expense form for daycare and other recurring expenses.
Can you have an FSA and HSA at the same time? The answer is yes, with certain exceptions.