Medical FSA & HSA

Forum|Forum|5 years ago
April 6, 2021
3 replies
47 views

Hi,

My wife has an HSA account with her employer and we have a high deductible plan. She maxed out her HSA. Can I put in money to an FSA for medical expenses from my employer? We work for two different companies.

Thank You,

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MinhT1

Alumni - Intuit

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yexlerAuthor

Level 2

Thanks for your help!

To clarify, both my wife & I are seeing behavioral therapists which are NOT covered by insurance. My wife is due in a couple of months & we hope to use HSA money to cover the deductible for the birth in the hospital. Being that we've spent thousands of dollars on therapy (which is an eligible medical expense), and there won't be enough HSA money for it, can I open up an FSA account with my employer? I see conflicting answers in the link you sent me. So far we've spent $7,500 in eligible therapy expenses which will not be covered via the HSA.

Can I open up the FSA with my employer for those uncovered expenses? Can I deduct it on my tax return? I believe the floor is 7% of AGI and my AGI last year was between 60-65k?

Thanks,

Mike9241

Level 15

can you have an FSA and HSA at the same time? Generally speaking, you cannot have a health FSA and HSA at the same time. However, there are a couple of exceptions: limited purpose FSAs and dependent care FSAs.

it does not matter whether one spouse has an HSA and the other has a general-purpose FSA.. no contributions to an HSA are allowed.

What is a limited purpose FSA (LPFSA)?
An LPFSA covers “limited” eligible expenses such as out-of-pocket dental and vision items, services, and procedures. If you’re enrolled in an HSA, you can have a LPFSA too (these are sometimes refered to as an “HSA compatible FSA”).

Like a health FSA, the maximum annual contribution amount is the same for an LPFSA (currently $2,750). LPFSAs may also have the $550 maximum carryover, depending on the employer’s plan.

LPFSA Eligible Expenses
What can you use your LPFSA for?

Dental

Dental plan deductibles, co-pays, and co-insurance
Cleanings
Exams and diagnostic services
Bridges, crowns, dentures, and fillings
Orthodontia
Reconstructions and implants
Root canals
X-rays
Vision

Vision plan deductibles and co-insurance
Eye exams and diagnostic services
Eye surgery, including LASIK and laser eye surgery
Contact lenses and solution
Eyeglasses (prescription and over-the-counter)
Eyeglass repair kits
Orthokeratology
Sunglasses (prescription only)
Service animals (e.g., guide dogs), including purchase, training, and maintenance
Refer to IRS publication 502 for a full list of eligible vision and dental expenses.

Can you submit a claim through your HSA and LPFSA for the same expense?
No. You cannot make a claim through both accounts for the same expense. This is called double-dipping. If you are reimbursed from your LPFSA, you cannot file a claim from your HSA (and vice versa).

One spending tip is to exhaust your LPFSA funds first before using your HSA. You can carryover all unused HSA funds, whereas the LPFSA only allows a carryover of up to $550; the remaining LPFSA balance would be lost if not spent.

Dependent Care FSA
The other type of FSA that you can have with an HSA is not healthcare related: a dependent care FSA, also known as a Dependent Care Assistance Plan (DCAP).

A dependent care FSA can be used for pay for the cost of care for dependents under age 13. You can also pay for care for dependents who cannot look after themselves while you’re at work or school (such as an elderly parent or child with disabilities).

Any eligible employee can have a DCAP account through their employer’s benefit plan. The maximum annual contribution limit for a DCAP is $5,000.

Dependent Care FSA Eligible Expenses
Daycare, preschool, and pre-kindergarten (including deposits for daycare)
Before and after school care
Day camps (overnight camps do not qualify)
Adult care
Elderly care
Sick child care

Mike9241