Originally Posted by
Cohiba
Yes you can contribute to both. I try to preserve and never touch my HSA contributions and I try to forecast the FSA costs
Be careful....
Why is it a good idea to have a limited-purpose FSA?
IRS rules do not allow you to contribute to a
health savings account (HSA) if you are covered by any non-qualifying health plan, including a
general-purpose health FSA. By limiting FSA reimbursements to dental and vision care expenses, you (or your spouse) remain eligible to participate in both a limited-purpose FSA and an HSA. Participating in both plans allows you to maximize your savings and tax benefits.
What is a limited-purpose flexible spending account?
A
limited-purpose health flexible spending account (referred to as a limited-purpose FSA) is much like a typical, general-purpose
health FSA. However, under a limited-purpose FSA,
eligible expenses are limited to qualifying dental and vision expenses for you, your spouse, and your eligible dependents.
Here’s how a limited-purpose FSA works. Money is set aside from your paycheck before taxes are taken out. You can then use your pre-tax FSA dollars to pay for eligible vision or dental expenses throughout the plan year. You save money on expenses you’re already paying for, like dental checkups, vision exams, eyeglasses, and much more.
Denny