Skip to main content
Menu File a Claim Login
American-Fidelity-logo
Menu
Menu File a Claim Login
American-Fidelity-logo
American Fidelity Logo American Fidelity Logo
  1. Strategy
      •  
      • Employee Benefits
      • Communication and Education
      • Enrollment and Admin
      • HR Assistance
      • Tax Savings
      • Compliance Updates
      •  
  2. Products
      •  
      • Benefits
      • Dependent Verification
      • HR Technology
      • Reimbursement Accounts
      • Retirement Savings
      • Section 125
      •  
  3. Why Us
      •  
      • For Education
      • For the Public Sector
      • For Automotive
      • Account Managers
      • Customer Testimonials
      •  
  4. Blog
      •  
      • Benefits Strategy
      • Reimbursement Accounts
      • Supplemental Benefits
      • Customer Stories
      • Compliance Updates
      •  
  5. Support
      •  
      • COVID-19
      • Employer Assistance
      • Videos
      • Contact Us
      •  
  6. Claims
      •  
      •  
Login
 
 
American Fidelity Logo

FSA Mistakes to Avoid – Other Reimbursement Accounts

 

September 20, 2019

3 minute read

Category: Reimbursement Accounts

Woman working from home

The rules surrounding Flexible Spending Accounts (FSAs) can be complex. The three types of FSAs, Healthcare Flexible Spending Accounts (Healthcare FSAs), Limited Purpose Flexible Spending Accounts (Limited Purpose FSAs), and Dependent Care Accounts (DCAs) each have their own set of rules for how they interact with other reimbursement accounts and with one another. Here are some of the most common rules to know:

Healthcare FSAs and Dependent Care Accounts

While Healthcare FSAs and DCA are both considered Flexible Spending Accounts, they have different purposes. One similarity is you may save on taxes by contributing to the accounts pre-tax via payroll deduction. You may have both a Healthcare FSA and a DCA at the same time, and often they will share the same plan year and runoff period. You may not transfer funds from one account to another.

Limited Purpose FSAs

LPFSAs are unique in that they are designed to only help pay for eligible dental and vision expenses. They can be combined with other reimbursement accounts such as HSAs and Health Reimbursement Arrangements (HRAs).

HSAs and Healthcare FSAs

Healthcare FSAs and HSAs are used similarly, but there are key differences in the way they interact with each other:

Contributions & Distributions
You cannot contribute to both a Healthcare FSA and an HSA at the same time. If you are contributing to a Healthcare FSA (or have funds still available), you can take distributions (withdraw or use on eligible expenses) from both your Healthcare FSA and HSA at any time during your plan year. However, this does not work the other way around. If you are covered by a Qualified HDHP and contribute to an HSA, you may not contribute to or have funds available for reimbursement from a Healthcare FSA (your own or your spouse’s).

Transitioning from One Account to Another
If you are switching from an HSA to a Healthcare FSA, the only rule is that you may no longer contribute to the HSA once your Healthcare FSA plan year starts. As mentioned above, you may continue to use your HSA funds for eligible medical expenses for you and your dependents. The transition from a Healthcare FSA to HSA is a bit more complex, as you cannot have any funds in your Healthcare FSA when you make the switch.

While FSA rules can be complex, we’re here to help! Contact your local account manager if you have questions about your reimbursement accounts or other employee benefits.

 

Learn more in our FSA & HSA Mistakes to Avoid Series:

FSA Mistakes to Avoid: Spouse & Dependent Rules

HSA Mistakes to Avoid: Other Reimbursement Accounts

HSA Mistakes to Avoid: Spouse Rules

HSA Mistakes to Avoid: Dependent Rules

 

This blog is up to date as of September 2019 and has not been updated for changes in the law, administration or current event.

  • Tags:
  • FSA
  • HSA
  • HCFSA
  • LPFSA
  • DCA

Share:

 

Shop for Eligible Items on the FSA Store

You may purchase FSA-eligible items online at the FSA Store. Browse medical supplies, over-the-counter medication, prescriptions, and more.

Visit FSAStore.com

 

Related FSA Articles

 

End of year tips for reimbursement accounts

December 20, 2022

4 minute read

The end of a calendar year can be a busy season. As you prepare for the new year, check out these tips for managing your reimbursement account.

  • Tags:
  • HCFSA
  • FSA
  • HRA
  • HSA

COVID-19 Relief Ending: Last Minute HCFSA Buys

December 20, 2022

1 minute read

COVID-19 relief is coming to an end. Don’t let your unused HCFSA funds slip away. Here are few tips on how to spend them.

  • Tags:
  • Compliance
  • HCFSA
  • FSA

FSA Mistakes to Avoid: Spouse & Dependent Rules

December 06, 2022

3 minute read

There are specific rules for annual contribution limits and the use of Healthcare FSAs or Dependent Care Accounts funds (DCAs).

  • Tags:
  • FSA
  • HCFSA
  • DCA

ESB-7676-0919

American Fidelity Assurance Company
americanfidelity.com

https://americanfidelity.com/blog/reimburse/fsa-mistakes-other-accounts/

Site Map

About Us

News Center

Careers

Contact Us

© 2022 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Cameron Enterprises

ESB-7676-0919

  • File a Claim
    Login
  • Home
  • Benefits Strategy
    • Employee Benefits
    • Communication and Education
    • Enrollment and Admin
    • HR Assistance
    • Tax Savings
    • Compliance Updates
  • Products
    • Benefits
    • Dependent Verification
    • HR Technology
    • Reimbursement Accounts
    • Retirement Savings
    • Section 125
  • Why Us
    • For Education
    • For the Public Sector
    • For Automotive
    • Account Managers
    • Customer Testimonials
  • Blog
    • Benefits Strategy
    • Reimbursement Accounts
    • Supplemental Benefits
    • Customer Stories
    • Compliance Updates
  • Support
    • COVID-19
    • Employer Assistance
    • Videos
    • Contact Us
  • Claims
  • Careers
    • Corporate Careers
    • Sales Careers
  • About Us
  • Site Map

Popular Topics:
  • Register for an Account
  • Forms
  • Unused FSA Funds
  • HCFSA Eligible Expenses
  • Carryovers, grace periods and runoff periods
  • HSA Eligible Expenses
  • HSA Tax Forms
  • Disability Tax Forms