Can You Have Both an FSA and HSA at the Same Time?

You can have both an FSA and HSA, but only under specific conditions that depend on the type of FSA and your HSA coverage level

The short answer is: it depends on which FSA you have. If you have a dependent care FSA (for childcare or adult care expenses), you can hold an HSA at the same time with no restrictions. If you have a health care FSA (for medical, dental, and vision costs), you can only have an HSA if your health care FSA is what's called a "limited-purpose FSA" — one that covers only dental and vision expenses, not general medical costs.

The IRS sets these rules because both accounts let you set aside pre-tax money for health expenses. If you could use both a full health care FSA and an HSA simultaneously, you'd be able to shelter too much income from taxes. The rules exist to prevent that overlap while still letting you use multiple accounts when it makes sense.

Key Takeaways

A dependent care FSA and an HSA can be held together without any restrictions, since they cover different types of expenses.
A health care FSA and an HSA cannot be held together unless the FSA is limited-purpose only (dental and vision only).
If you have a standard health care FSA, you must choose between that account and an HSA — you cannot contribute to both in the same year.
Your employer's plan documents will tell you whether your health care FSA is limited-purpose or standard, or you can ask your benefits administrator.
If you switch from a health care FSA to an HSA, any unused FSA money from the previous year stays in that FSA account and does not transfer.

When a dependent care FSA and HSA work together

A dependent care FSA pays for childcare, preschool, adult day care, or care for an elderly parent — expenses that have nothing to do with medical treatment. Because dependent care FSAs and HSAs cover completely separate categories of spending, the IRS allows you to contribute to both in the same year without penalty.

This combination can be useful if you have both medical expenses you want to cover with an HSA and childcare costs you want to cover with a dependent care FSA. You would set aside pre-tax money in each account for its intended purpose, and neither one affects your ability to use the other.

Why you cannot have a standard health care FSA and an HSA together

A standard health care FSA covers medical, dental, vision, and prescription drug expenses — the same categories an HSA covers. If you could contribute to both accounts in the same year, you would be able to set aside far more pre-tax money for health costs than the IRS allows. The IRS limits how much you can shelter from taxes each year, and allowing both accounts simultaneously would break that limit.

The rule is simple: in any year you contribute to a standard health care FSA, you cannot also contribute to an HSA. If you try to contribute to both, the HSA contribution will be rejected, or you may face tax penalties when you file your return.

Limited-purpose FSAs: the exception that allows both accounts

Some employers offer a limited-purpose FSA, which covers only dental and vision expenses — not general medical or prescription drug costs. Because a limited-purpose FSA does not overlap with what an HSA covers for medical care, you can hold both accounts at the same time.

This setup lets you use the limited-purpose FSA for dental and vision costs while using the HSA for everything else: medical visits, prescriptions, medical equipment, and other health expenses. If your employer offers this option, your benefits guide or summary of benefits will say "limited-purpose FSA" or "dental and vision FSA." If you are unsure whether your FSA is limited-purpose, ask your benefits administrator — they can tell you exactly what your plan covers.

How to know which FSA you have

Your employer's benefits materials should state what your FSA covers. Look for language like "health care FSA," "medical FSA," "limited-purpose FSA," or "dental and vision FSA." The summary of benefits and coverage (often called the "SBC") will list what expenses the FSA pays for.

If the FSA covers medical visits, prescriptions, or general health care costs, it is a standard health care FSA, and you cannot contribute to an HSA in the same year. If it covers only dental and vision, it is limited-purpose, and you can have an HSA. When in doubt, contact your employer's benefits department or HR office — they have your plan documents and can give you a definitive answer.

What happens to FSA money if you switch to an HSA

If you decide to leave your health care FSA and switch to an HSA in a future year, any money you did not spend in your FSA does not roll over to the HSA. FSA funds follow the "use-it-or-lose-it" rule: money you do not spend by the end of the plan year (or by the end of a grace period, if your plan offers one) is forfeited. You cannot transfer FSA money to an HSA, and you cannot get it back as a refund.

This is one reason to be careful about how much you contribute to an FSA if you think you might switch to an HSA soon. If you know you are leaving your job or changing plans, try to estimate your actual expenses for the remainder of the year and contribute only what you are likely to spend.

Switching between accounts: timing and rules

You can switch from a health care FSA to an HSA, but only at certain times. Most people can make changes during their employer's open enrollment period, which typically happens once a year in the fall. If you have a may have access to life event — such as losing coverage, getting married, having a child, or changing jobs — you may be able to make changes outside of open enrollment.

When you switch, remember that you cannot contribute to both accounts in the same year. If you stop contributing to your health care FSA partway through the year, you can start contributing to an HSA, but the timing depends on your employer's plan and when your HSA coverage begins. Your benefits administrator can tell you the exact dates and whether you can make the switch mid-year.

Frequently Asked Questions

Can I have an HSA if I have a dependent care FSA?

Yes. A dependent care FSA covers childcare and adult care expenses, while an HSA covers medical costs. They do not overlap, so you can contribute to both in the same year without any IRS restrictions.

What happens if I accidentally contribute to both a health care FSA and an HSA?

The HSA contribution will likely be rejected by your HSA provider, or you may face tax penalties when you file your return. Contact your HSA provider and your employer's benefits department immediately to correct the error. You may need to withdraw the excess contribution and pay taxes on it.

Can I use my FSA money to pay for HSA-may be able to access expenses?

No. Each account is separate. Money in your FSA can only be used for expenses your FSA covers. Money in your HSA can only be used for HSA-may be able to access expenses. You cannot transfer money between them or use one account's funds to pay for the other account's expenses.

If I have a limited-purpose FSA, can I use it and an HSA for the same dental visit?

You can use either account to pay for the dental visit, but not both for the same expense. If you use your limited-purpose FSA to pay the bill, you cannot also claim the same expense on your HSA. Choose which account to use based on which has more money available or which you want to preserve for future costs.

Does my employer have to offer a limited-purpose FSA?

No. Limited-purpose FSAs are optional. Many employers offer only a standard health care FSA. If your employer does not offer a limited-purpose FSA and you want to use an HSA, you would need to stop contributing to your health care FSA and switch to HSA coverage in a future year.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.