Awesome info @BMcCalpin ! This is very helpful.
1. An FSA always covers both spouses... - Ok even though I'm not on her insurance, I'm technically covered by that FSA the same way she is by the HSA. Which causes this issue. Makes sense!
2. This means that while you are covered by the FSA, that you cannot contribute to your HSA... - I actually immediately halted my contributions to the HSA after we discovered having both isn't allowed. Shortly after her insurance began.
5. The limiting factor is that you cannot use funds from both the FSA and the HSA for the same medical expenses. - Does this mean literally the same bill? You're not allowed to pay 50% of a prescription for the FSA and the other 50% from the HSA. If that's correct, we should be fine. She only put 90$ in that FSA and hasn't actually used it for anything. But the HSA has been used this year (solo)
6. Your coverage for the month is determined by the coverage on the first day of the month - I'll have to double check our records but I'll bet her insurance started mid-month (Jan15th) and because I halted contributions almost immediately... there might not be any overlap into the following month (Feb1st).
If this isn't quite the case, if there is maybe 1 or 2 paycheck contributions to the HSA before it was halted. Those 1 or 2 contributions are all that would need to be withdrawn via the custodian, correct? Not the entire years-worth.
Again, thanks so much! This is extremely helpful.
