LTG51

Hi, I'm going to be in a similar situation. My wife currently has a PPO through her employer and an FSA. I am covered through her PPO and also have an FSA through my employer. Her new employer only offers an HDHP with HSA. If I understand the regulations correctly, we are both still allowed to be covered by an HDHP, we just can't have an HSA until the end of the year, when my employer's benefit cycle ends? More importantly, since I will still have my FSA (I know that her FSA from her old employer will only cover expenses incurred through her last day of employment), are we allowed to use my FSA to pay for expenses incurred while on the HDHP (ex. the deductibles, coinsurances, etc.)? Also, I know that you mentioned it's sometimes possible to have your FSA revoked under Section 125 so that we can utilize an HSA. I actually haven't spent any of mine yet this year, so I was curious if it's even worth exploring that option or if it's probably more trouble than it's worth.