In most cases, you cannot have an HSA and an FSA at the same time. However, there are some exceptions.
If you are currently covered under a high-deductible health plan (HDHP), in order to qualify for an HSA, you are not allowed to be covered under other health coverage. Your, or your spouse's, enrollment in a traditional Health Care FSA would be considered "other health coverage" and disqualify you from having an HSA.
However, there are some exceptions to this rule: Limited Purpose FSAs (LPFSA) and Dependent Care FSAs (DCFSA). These plans can also be referred to as "HSA-compatible FSAs."
If your employer offers a Limited Purpose FSA or a Dependent Care FSA, you are able to enroll and contribute while also contributing to your HSA.
Limited Purpose FSAs cover a limited amount of eligible medical expenses, such as out-of-pocket costs for vision and dental care. Because they are limited in the nature of health costs they cover, they are not considered "other health coverage." If you are currently eligible for an HSA and your employer offers a Limited Purpose FSA, you are able to enroll in both.
You can find more details about eligible LPFSA purchases here.
If you have both an HSA and a Limited Purpose FSA, you are only allowed to submit a claim for reimbursement under one plan. You cannot submit claims under both plans (otherwise known as "double dipping"). If you submit a claim for reimbursement under your Limited Purpose FSA, you cannot also be reimbursed from your HSA, and vice versa.
Dependent Care FSAs cover costs associated with eligible dependent care, such as childcare, preschool, day camps, elder care, and more. This coverage is not considered "other health coverage" and therefore does not disqualify you from also having an HSA.
Questions? We are happy to help! Please reach out to Benepass Support for any assistance.