Mike32966

Thanks Brian, not what I was hoping for but exactly the information I needed. It sounds like I'll have all the downside of the HDHP and non of the upside 😞 So do I let the plan run and correct at the end of the year or stop contributions now. If I let it run will I receive any employer contribution in the corrective distribution or does that go to the employer? Not sure how I feel about that. I wouldn't have selected this plan if I wasn't to receive the employer contribution towards the deductible and keeping the full amount gets me closer to where I thought I would be.

Hi, I'm looking for some guidance on how to unravel a mess we've created with adding both an FSA and HSA for 2023. My wife started a new job with her own healthcare coverage and added an FSA with $250 for 2023. I have a HSA maxed at $3850 and partly paid by my employer. She didn't realize this would create a problem with having both FSA and HSA in the same year and it's too late now to change the plans. I found an older post here from 2009 and wanted to confirm that the advice was still current. The post says to suspend contributions to the HSA and to spend down the FSA asap. Once the FSA is empty, restart the HSA contributions and I can then contribute up to the annual amount. I'm also seeing conflicting posts that say FSA coverage applies to the whole year regardless of whether it's spent down so disqualifies HSA contributions for the whole year. It also doesn't say if there are penalties or what to do with any money contributed to the HSA. What happens to this money? Does it need to be removed from the HSA and/or taxed at the end of the year? Can I continue with contributions to the HSA and just pay the tax? I also found a post about the possibility that her FSA may include a clause where "the spouse can elect that the money in the FSA can only be used by family members not covered by the HSA" so checking that out. I'm looking for any help on what to do next. Any suggestions would be appreciated.