Can I contribute to a limited purpose FSA and an HSA?
Asked by: Joe Kuphal | Last update: September 24, 2025Score: 4.9/5 (75 votes)
Can you have an HSA and a limited purpose FSA?
The LPFSA is a special type of FSA that can be paired with an HSA and allows you to use pre-tax dollars to pay for qualified dental and vision expenses. Using funds from your LPFSA instead of your HSA allows your HSA to continue to grow tax-free into retirement.
Can I contribute to an FSA and an HSA in the same year?
Not Allowed. You can't contribute to a Health Savings Account (HSA) and have a general purpose Health Flexible Spending Account (FSA) for overlapping months. And, if you are married, your spouse can't have a general purpose Health FSA at the same time either.
Can a couple have an FSA and an HSA?
Your spouse can't contribute to an HSA during any month in which you participate in a general Health Care FSA, even if you're also enrolled in the HSA-qualified medical plan that your spouse's employer sponsors and you meet all other eligibility requirements, and even if you do not use your general Health Care FSA to ...
How much can you contribute to HSA and FSA?
The medical Flexible Spending Account (FSA) contribution limit is $3,300. The Healthcare Savings Account (HSA) contribution limits will increase to $4,300 for individuals and $8,550 for family coverage.
Limited Purpose Flexible Spending Account | Special Hack for your HSA
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
How much can you put in an approved FSA HSA?
Facts about Flexible Spending Accounts (FSA)
They are limited to $3,300 per year per employer. If you're married, your spouse can put up to $3,300 in an FSA with their employer too. You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you're married, and your dependents.
What disqualifies you from contributing to an HSA?
If you can receive benefits before that deductible is met, you aren't an eligible individual. Other employee health plans. An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses can't generally make contributions to an HSA. FSAs and HRAs are discussed later.
Can I have HSA and dependent care FSA at the same time?
Yes. You can contribute to a health savings account (HSA) and dependent care FSA at the same time. Both healthcare plans allow you to use pretax dollars to pay for expenses.
What is the difference between a general purpose FSA and a limited purpose FSA?
Unlike a general-purpose health FSA, however, funds in a limited-purpose health FSA can only be used to pay for qualifying dental, vision and orthodontia expenses. It is set up in this way so that it can be used alongside a Health Savings Account (HSA).
Can you contribute to FSA and HSA in the same year if you change jobs?
Under IRS rules, you cannot actively enroll in and contribute to a General-Purpose FSA account and an HSA account simultaneously. Because of that, when switching from an FSA to an HSA it's best to make a “clean break” by spending down your FSA balance to $0 before the HSA plan year begins.
What happens when my HSA balance is $0?
Will my HSA account remain open if I have a $0 balance? The account will remain open if you have a $0 balance. There is no fee assessed to you for having a $0 balance.
What happens if I contribute to HSA and FSA in the same year?
Internal Revenue Service (IRS) rules clarify that you can't contribute to a Health Savings Account (HSA) and a Flexible Spending Account (FSA) in the same plan year.
Can you use limited purpose FSA for Invisalign?
Invisalign orthodontics reimbursement is eligible with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA) or a limited-purpose flexible spending account (LPFSA).
Can I use limited FSA for sunglasses?
In most cases, non-prescription sunglasses are not eligible for payment with FSA funds. However, reading sunglasses like our SunReaders® are FSA-eligible because they help correct presbyopia. Reading glasses (without tinted lenses) are also FSA-eligible for this reason.
Can you have a limited purpose FSA with an HSA?
By limiting FSA reimbursements to dental and vision care expenses, you (or your spouse) remain eligible to participate in both a limited-purpose FSA and an HSA. Participating in both plans allows you to maximize your savings and tax benefits.
Can I have both an FSA and an HSA?
Even though they're referred to interchangeably, these are very different types of accounts. Both HSAs and FSAs are similar in that they help you make qualified health purchases using tax-free funds. But with limited exceptions, you can't have both.
What happens if I have an HSA and my spouse has an FSA?
You cannot have an HSA account if your spouse has a general purpose health care FSA through his/her employer under which money can be reimbursed for your eligible health care expenses.
What is the 6 month rule for HSA contributions?
This is because when you enroll in Medicare Part A, you receive up to six months of retroactive coverage, not going back farther than your initial month of eligibility. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.
What is the downside of an HSA?
Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).
What is the loophole for HSA retirement?
For those reasons, it's important to consider whether taking money from an HSA to fund retirement expenses other than medical care makes sense. If you can wait until you're at least 65 to make non-qualified withdrawals, you can avoid the 20% tax penalty.
Can I max out HSA and FSA?
If you're contributing to an HSA, you can't fund a health care FSA in the same year. But you can have an HSA along with a limited purpose FSA if your employer offers it. This type of FSA covers only those expenses not covered by your health plan, namely dental and vision expenses.
Can you use FSA for gym membership?
But that's not all a Letter of Medical Necessity can do for you. You can even pay for your gym membership with FSA/HSA funds, making it easier than ever to access top-of-the-line equipment like the models we have in our studios.
Can you use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.