I have a couple complicated tax questions related to HSAs and FSAs for a newly married couple. We have not yet changed the situation since we got married, but I started to realize that we might have to do something to ensure there are no tax impacts. From my internet research, married couples are not allowed to have both an FSA and an HSA, so I'm trying to figure out how to fix this both for this year and for future years
Background/Current Situation:
We got married on March 29, 2022.
Spouse 1 has/had an HSA under a Family HDHP which covers himself and his kids from a previous marriage. He has deposited $4000 manually (not through his paycheck).
Spouse 2 has/had an FSA under her Family PPO which covers herself and her kids from a previous marriage. She has deposited and used $1500.
Question 1
For the current/2022 tax year, do we (or can we) need to do anything to ensure we're not penalized for having both an FSA and HSA? For example, do (or can) I need to remove that $4000 from the HSA? (It was a manual deposit from my savings account, not salary), etc.?
Question 2
For the long run, we prefer the HSA because of it's long-term tax/investing benefits. Can Spouse 2 drop the FSA and Spouse 1 continue to contribute to his HSA? That said, Spouse 2's kids are still younger and she likes the lower deductible PPO. Do we need to get on to 1 healthcare plan or can we keep them separate?
Thank you in advance!
