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Know your benefits: FSA vs HSA

a pile of question marks with one red question mark and one blue question mark burried in the group

 

The Â鶹´«Ã½ provides three Flexible Spending Accounts (FSA) and a Health Savings Account (HSA). These benefits can often be confusing - especially understanding the eligibility rules surrounding each account. This article will help break down the nuances to help you best understand the benefits available to you. You can also review the FSA and HSA webpages for additional information. 

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What accounts are available?

There are three (3) Flexible Spending Accounts (FSA) - each with a different purpose:

  1. Health Care FSA (medical expenses)
  2. Dependent Care FSA (daycare expenses)
  3. Limited Purpose FSA (dental and vision expenses only)

There is one Health Savings Account (HSA) which can be used for medical, dental, and vision expenses only.

Compatible health plans

  • Health Care FSA (medical expenses) - can be enrolled in any Â鶹´«Ã½ Choice medical plan or opted out of a Â鶹´«Ã½ Choice medical plan 
  • Dependent Care FSA (daycare expenses) - can be enrolled in any Â鶹´«Ã½ Choice medical plan or opted out of a Â鶹´«Ã½ Choice medical plan
  • Limited Purpose FSA (dental and vision expenses only) - can only be enrolled if you are also enrolled in and contributing to the HSA
  • HSA - must be enrolled in the HDHP or opted out. If you are opted out of a Â鶹´«Ã½ Choice Plan, you must confirm that your other health care coverage is HSA compatible. If you are unsure, contact TouchCare at 1-866-486-8242, email them at assist@touchcare.com, or open a ticket on . 

Incompatible health plans

  • Health Care FSA - none
  • Dependent Care FSA - none
  • Limited Purpose FSA - must be in the HDHP or opted out as you must have an HSA to access this FSA
  • HSA - cannot be enrolled in
    • Premium & Copay Medical
    • Health Care FSA
    • Medicare
    • Tricare
    • Retiree Health Coverage
    • Any health plan that is not qualified as HSA compatible by the IRS

Can you have an HSA and FSA at the same time?
You can have each of these accounts on their own if you otherwise meet the requirements. Below is a breakdown of the FSA and HSAs that can be paired together.

  1. Health Care FSA and Dependent Care FSA - yes
  2. HSA and Dependent Care FSA - only with HDHP or opted out since you must be in an HSA-qualifying plan to access the HSA
  3. HSA and Limited Purpose FSA - only with HDHP or opted out since you must be in an HSA-qualifying plan to access the HSA
  4. Health Care FSA and HSA - no, cannot have both
  5. Health Care FSA and Limited Purpose FSA -  no cannot have both

When can I enroll or make changes?

  1. Health Care FSA (medical expenses) - during open enrollment or within 30 days of a life event
  2. Dependent Care FSA (daycare expenses) - during open enrollment or within 30 days of a life event
  3. Limited Purpose FSA (dental and vision expenses only) - during open enrollment or within 30 days of a life event
  4. HSA - anytime as long as you are in a compatible health plan

How do I know what is a qualified purchase?

  • Use the
  • Use the barcode scanner in the ASIFlex app 
  • Shop the
  • Shop the

When are funds available?

  1. Health Care FSA (medical expenses) - immediately, even if you have not contributed the full amount, you have access to the full amount requested the first day of coverage
  2. Dependent Care FSA (daycare expenses) - as funds are deposited via payroll deduction
  3. Limited Purpose FSA (dental and vision expenses only) - immediately, even if you have not contributed the full amount, you have access to the full amount requested the first day of coverage
  4. HSA - as funds are deposited via payroll deduction

When do funds expire?

  1. Health Care FSA (medical expenses) - at the end of the plan year or when you are no longer an eligible employee
  2. Dependent Care FSA (daycare expenses) - at the end of the plan year or when you are no longer an eligible employee
  3. Limited Purpose FSA (dental and vision expenses only) - at the end of the plan year or when you are no longer an eligible employee
  4. HSA - never

What happens if I don't use all the funds in my account?

  1. Health Care FSA (medical expenses) - unused funds are returned to the plan; there is no rollover and no grace period
  2. Dependent Care FSA (daycare expenses) - unused funds are returned to the plan; there is no rollover and no grace period
  3. Limited Purpose FSA (dental and vision expenses only) - unused funds are returned to the plan; there is no rollover and no grace period
  4. HSA - funds are yours to keep; they never expire and will remain yours if you separate from the university

Which one makes sense for me?
If you are unsure which account would work best for you and your situation, reach out to TouchCare to discuss. They can work with you on your anticipated medical expenses, comparing plans, and providing a recommendation that works best for you and your family. TouchCare can be reached at 1-866-486-8242, email them at assist@touchcare.com, or open a ticket on . 

 

Emailed via benefits newsletter on 9/9/2025.
Contact Benefits: (907) 450-8242 | ua-benefits@alaska.edu | schedule one-on-one time