HSA and Eligible FSA

[jeff77]

On July 1 my wife enrolled in a non HDHP thru her employer.  Along with this came eligibility to enroll in an FSA which she declined.  I have a HDHP thru my employer.

Does the eligibility of enrolling in an FSA now exclude me from contributing to my HSA for the term of her employers FSA plan year?

Or is it since she declined to have funds contributed to this FSA still make me eligible for HSA contributions?

[CuseFan]

I know there is at least one H&W expert on this forum who know for certain, but I believe it's your HDHP and HSA that preclude her from contributing to an FSA, except a limited use FSA (only vision and dental, I think, but not sure) if that is offered.

[Brian Gilmore]

You're fine.  If your spouse had enrolled in the general purpose health FSA, that would have been disqualifying coverage that blocked HSA eligibility for both your spouse and you.

However, in this case your spouse declined the health FSA.  Mere eligibility for the health FSA is irrelevant here.  That's why there's no issue.

Only the ability to incur reimbursable claims pre-deductible would be disqualifying coverage--and you do not have that ability in this situation where your spouse declined the health FSA.

• More details: https://www.newfront.com/blog/hsa-interaction-health-fsa-2

Slide summary:

2024 Newfront Go All the Way with HSA Guide

[jeff77]

Thank you for your answer here Brian.  This is good news for me.

[CuseFan]

Like clockwork, Brian always comes through with the complete and accurate H&W answers!