We know the names can sound confusing. Here’s how the two accounts work.
Yes, you can contribute to both in the same plan year. They’re separate accounts with separate limits, so what you put in one doesn’t reduce what you can put in the other. An FSA, or flexible spending account, lets you set aside money from your paycheck before taxes to pay for eligible expenses.
- Health care FSA: Medical, dental, and vision expenses for you and your dependents, such as copays, prescriptions, and glasses.
- Dependent care FSA: Can be spent on daycare or after-school care for a child under age 13, or care for a spouse or dependent who can’t care for themselves.
Money in one account can’t be used for the other’s expenses. For example, you can’t use your dependent care FSA for a doctor visit, or your health care FSA for daycare.
The IRS sets the contribution limit for each account. The dependent care FSA limit applies per household, so you and your spouse share one limit, and any employer contribution counts toward it. The limit might be lower if you’re married and filing separately. Your employer can set a lower limit than the IRS maximum for either account, so your HR team can tell you the limits that apply to you. You can find the current IRS limits at irs.gov.
If you have a Health Savings Account (HSA), you can’t also contribute to a general-purpose health care FSA. Ask your HR team if your employer offers a limited-purpose FSA, which covers dental and vision only and works with an HSA. A dependent care FSA works with an HSA.
This article is for general information only and isn’t tax or legal advice. For questions about how an FSA affects your taxes, please check with a tax advisor. For questions about which accounts your employer offers, your limits, or when you can enroll or make changes, please check with your HR team.
Nayya is a recommendation tool. We don’t enroll you in benefits, change your contributions, or manage your FSA or HSA. Enrollment happens in your employer’s benefits administration system. For help filing a claim, see our article on how to submit a claim for a benefit.
Questions? Email support@nayya.com. We’re available Monday through Friday, 9:00 am to 5:00 pm ET.