Spouse HSA and my FSA

[Guest SoConfused]

Hi all-

I have read articles, blogs, posts until my head is spinning.

Here's my situation.
Husband participates in HDHP HSA through his employer; single coverage. Contributions are via payroll deductions his employer makes a contribution as well.
I participate in non-HDHP plan, single coverage through my employer and just signed up for an FSA for 2013. (not a limited FSA). F

From what I'm reading,
I should not have signed up for the FSA is that correct? Even though there have not been any deductions from my paycheck for the FSA; my employer only allows one time annual enrollment in the FSA.

My husband has already had a HSA contribution deducted from his paycheck in 2013 for $100 his employer contributed $50 for a total of $150.

Do I have him stop the HSA deductions until we zero out the FSA? What about the $150 that was already deducted/contributed in his HSA? Also, once we spend the $1200 I am contributing to the FSA; then we
can resume the payroll deductions to his HSA correct? Sorry, for all the questions...what a mess!

Thanks in advance for any and all advice!!

[Guest SoConfused]

I emailed the plan admin of my FSA account with the same info above. Here is the response:

If your husband has an FSA card that is linked to your account he is not technically participating in having a FSA account, he only has access to yours. In order to be considered an active participant in a FSA account he would need to be enrolled in his own name, and be having deductions taken from his pay pre-tax. As it stands right now your husband does not have an FSA account, and would not be considered to have one by using your account.

Is this correct? I am finding that even the FSA and HSA adminstrators are confused by the IRS rules.

[Guest mrhsa]

Unfortunately, your enrollment in your company's FSA will completely cancel your spouse's HSA eligibility. Unless your FSA funds can only be used for your expenses and not your spouse's (very few employer FSA plan documents state this), then the IRS will assume that the FSA funds are available to all family members. This provides the "first dollar coverage" that makes your spouse ineligible for an HSA. Your spouse will remain ineligible until the end of your FSA plan year (not just until you have a zero balance in your FSA). It is unfortunate that this happened.

[Guest marjbarge]

Hi All: I have created a problem. Please help! I elected to have $20.00 taken from each paycheck to fund an FSA (not restricted to dental, vision etc). Meanwhile (effective 5/1/14), I chose a High Deductible (HSA eligible) insurance policy from the Affordable Care Act marketplace. After all this was complete (and undoable) I found research saying I cannot have both plans at the same time. It seems I cannot stop my FSA contribution because I have not encountered an eligible "Change in Status" which is limited to marital status, # of dependents, employment status etc. I cannot change the type of insurance policy I have-I already checked and was told "no". How can I get out of the FSA so I can fund my HSA account? What is the penalty if I set aside and spend $520 in my FSA and fund my HSA (likely by not more than $2,000). Thanks so much. Marjorie