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Using an HSA With an FSA

An HSA-compatible FSA can be used tax-free only for dental and vision expenses until the HSA deductible is reached.

Question: I am covered by a high-deductible health insurance policy, and my husband has health insurance through his employer. He has a flexible spending account at work, and I would like to have a health savings account. Can we do this? --J.C., Beloit, Wis.Answer:

You generally can’t make HSA contributions if you’re covered by a flexible spending account. Even though your husband has his own health insurance, most FSAs cover spouses and dependents, too, says Jody Dietel, chief compliance officer for WageWorks, which administers FSAs. You can contribute to an HSA, however, if he has an “HSA-compatible FSA,” which can be used tax-free only for dental and vision expenses until the HSA deductible is reached, after which it can be converted to a regular FSA.

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