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Yes, you can have an FSA with an HSA As long as your employer offers either a limited-purpose or post-deductible FSA, you can keep your HSA with no issues! Remember, FSA funds disappear after the plans year is over with a few exceptions, so make sure youll definitely use that money before making any contributions.
A Flexible Spending Account is an employee benefit that allows you to set aside money from your paycheck, pre-tax, to pay for healthcare and dependent care expenses. Unlike a Health Savings Account (HSA), an FSA is not administered by your health insurance. However, it can still help you save money on income taxes.
Health savings accounts offer a three-pronged tax benefit: tax-free contributions, investment growth and withdrawals. Consumers should ideally invest their HSA funds, like they would a 401(k) account, for example, to allow the money to grow for future medical costs. Most people dont do that; they save in cash.
An HRA can be used in tandem with a general medical flexible spending account (FSA). Typically, qualified expenses are paid from the FSA first to avoid forfeiting funds, and then funds from the HRA are used to cover any additional qualifying medical expenses.
FSAs and HSAs are pre-tax accounts you can use to pay for healthcare related expenses. To qualify for an HSA you must have a high deductible health plan. With both FSAs and HSAs you can pay for things like co-pays medical bills and vision expenses.
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FSAs do not let you invest, which means whatever money you put in is the money you get. By contrast, you can invest your HSA and any potential growth accrues on a tax-free basis. For this reason, members may treat their HSA like a complementing retirement account to their 401(k).
Key takeaways. HSAs and FSAs both help you save for qualified medical expenses. HSAs may offer higher contribution limits and allow you to carry funds forward, but youre only eligible if youre enrolled in an HSA-eligible health plan. FSAs have lower contribution limits and generally you cant carry over funds.
There are three types of FSA accounts: 1) Health Care FSA (HCFSA); 2) Limited Expense Health Care FSA (LEX HCFSA); and 3) Dependent Care FSA (DCFSA).

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