@BillM223
The issue was we changed health plans mid year from a non-HDHP to an HDHP when my spouse switched employers. at the beginning of the year, I had set up an FSA through my employer and hadn't caught the conflict at the time of our qualifying event. We have since corrected this for 2023, so the eligibility is good to go moving forward.
I thought the last month rule would apply to us but it sounds like I am maybe over complicating the situation and can just defer the excess contributions to next year and take the (much more palatable) 6% excise tax on the overcontributions we didn't already withdraw. It sounds like we don't need to handle the carryover in any special way for it to count for next year then?
