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Contribute to an HSA or FSA...or both?

Contribute to an HSA or FSA...or both?

February 16, 2024


Should you contribute to an HSA or an FSA, or both?  

Here are a few things to consider:

HSA Eligibility: 

1.  you must be enrolled in an HSA-eligible health plan

2. you must not be enrolled in Medicare

3.  you must not be claimed as a dependent on someone else's tax return. 

HSA contribution limits:

Contribution limits for 2023 are $3,850 for self-only coverage and $7,750 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

FSA Eligibility: 

1.  you must be employed by an agency that participates in FSAFEDS; 2.  you must be eligible to enroll in the Federal Employees Health Benefits Program (FEHB), though you do not actually need to be enrolled in FEHB.

3. there is no health plan requirement to sign up for an FSA.  You can enroll whether or not you have a health insurance plan

Contributing to BOTH:

You can contribute to both HSA and healthcare FSA  if  your FSA is "HSA-compatible." This means that it's a limited purpose FSA that can be used to pay for certain qualified expenses, like vision or dental.

Using them together,  an HSA and limited purpose FSA can help you save for qualified medical expenses each year.

One thing to remember:   FSA funds are typically subject to the "use it or lose it" rule. You must use all contributions within the year or forfeit whatever's leftover, with some exceptions.

On the other hand, HSAs  do not have this rule, allowing you to save and invest contributions year over year.


At IFG, we are here to accompany you on your financial journey. We want to assist you in mapping out a plan that fits your unique financial situation.   

Call to schedule an appointment today.  We're here to help.