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Can I Have an HSA Account If My Spouse Has an FSA Account?

Both health savings accounts (HSAs) and flexible spending accounts (FSAs) are part of the drive toward consumer-driven health care. Both accounts allow individuals to put money aside on a pre-tax basis and use that money to pay health care costs. You can open a health savings account to save on taxes and take control of your health care spending, even if your spouse already has an FSA in place.

  1. Health Plan Eligibility

    • If you want to open a health savings account to cover the health care expenses of your family, you must first make sure the health insurance you have is HSA-eligible. Not every health insurance plan is eligible for an HSA. In order to qualify, the plan must be considered a high-deductible health plan. If you get your health insurance through work, check with your benefits administrator or human resources department. If you bought your plan on your own, check with the insurance broker who sold you the plan. In order to qualify as an HDHP, the plan must have an individual deductible of at least $1,200 or $2,400 for family coverage.

    Use FSA Funds First

    • If you have a health savings account and your spouse has a flexible spending account, you should use up the funds in the FSA first. This is because any money remaining in the FSA at the end of the year is forfeited. On the other hand, the money remaining in the HSA at the end of the year remains in the account and rolls over to the following year. If you have both types of accounts, it is important to spend that money strategically to make the most of it.

    Tax Savings

    • Your spouse's flexible spending account can reduce your overall tax bill since the money contributed to the FSA goes in on a pre-tax basis. The money your spouse contributes to the FSA is deducted from her taxable income, thereby lowering the overall tax liability. You can further lower your collective tax liability by contributing to a health savings account as well.

    Contribution Limits

    • As of 2011, there is no contribution limit for a flexible spending account, but that is changing. As of 2013, flexible spending account contributions will be limited to $2,500. Health savings accounts, on the other hand, currently do have a contribution limit. As of 2011, that limit is $3,050 for a single plan and $6,150 for a family HSA account.

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