Medically reviewed on January 3, 2023 by Jillian Foglesong Stabile, MD, FAAFP. To give you technically accurate, evidence-based information, content published on the Everlywell blog is reviewed by credentialed professionals with expertise in medical and bioscience fields.
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Health savings account (HSA) and flexible spending account (FSA) can help you reduce your healthcare expenses. That’s because these tax-sheltered accounts enable you to pay for eligible medical expenses using tax-free money .
That can certainly be an advantage if you’re aiming to reduce your medical costs. But if you’re seeking to reap the most benefits from these opportunities, you might also ask: Can you have an HSA and FSA at the same time?
The answer is sometimes yes—but it depends on the kinds of accounts you have. Below, we’ll explore your options. We’ll also review the differences between FSAs and HSAs so you can choose the one that’s right for you.
You may be able to have an FSA and HSA at the same time. However, it depends on which type of FSA account you have.
The three types of FSA accounts are as follows :
You can’t have a healthcare FSA and an HSA at the same time, since they’re both used to pay for the same types of expense—your medical costs .
However, you can have a limited-purpose or dependent care FSA and an HSA simultaneously. So, for example, you could use a limited-purpose FSA to pay for just your dental and vision expenses, while using an HSA to cover your other healthcare costs.
Since you can’t have a healthcare FSA and an HSA at the same time, you’ll need to choose one over the other. So which one is better?
Let’s review FSAs and HSAs in greater detail to find out.
FSAs can be opened through your employer. Once your account is set up, you can contribute tax-free money to it throughout the year.
You must decide how much you want to contribute to your FSA at the start of your enrollment. In 2023, the annual FSA contribution limit is $3,050 per year per employer . Each month, your employer will take out your monthly contribution from your paycheck automatically.
What can FSA be used for? One cool feature of FSAs is that you gain instant access to your total annual contribution amount from the very first day of enrollment. For instance, if you decide to contribute $3,050 for the year, you can spend up to that amount even if you’ve only contributed a small portion of it so far.
While FSAs have many perks, they also have some limitations. For instance:
HSAs are similar to FSAs, but they differ in the following ways:
While HSAs have some limitations, they also offer the following benefits:
As you can see, HSAs and FSAs can both help you save money on out-of-pocket healthcare expenses. FSAs may be a better option for people who don’t want to enroll in a high deductible health plan. They also stand out for their immediate annual contribution access.
That said, an HSA may be better if you’re self-employed or want to use your account to invest for retirement.
Finding the right options to cover your healthcare costs can provide significant piece of mind. But it’s equally important to have access to affordable, transparently priced healthcare when you need it.
No matter which type of account you choose, you can access at-home lab tests or telehealth services from Everlywell with no surprise bills. And yes, you can use your tax-free FSA or HSA contribution to pay for them.
Want to learn more? Explore our convenient health and wellness products and services at Everlywell today.
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