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Thanks for detailed explanation! I do see now in that the "I had different coverage at different times of the year" page has the following text. I guess her FSA falls under the "Medicare or another non-HDHP plan" section. I missed this before because the question before this doesn't mention the "other plan" aspect other than Medicare.

 

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Note, I did have my HSA provider distribute them as excess contributions so I think I am fine there.