@Frozo40 wrote:
For the year 2020, would the last month rule apply considering that the HRA and FSA funds were depleted in March, all on our child’s medical bills?
No. You are still "covered" by the FSA.
The FSA is definitely disqualifying because it can be used to pay for care for the owner, their spouse and their children. The only way not to be covered by the FSA is for your spouse to quit with the account empty.
In the future, your spouse may be interested in a "limited purpose" FSA. This covers care items not normally covered by insurance (like eyeglasses and braces) and is not disqualifying for your HSA contributions.
The HRA is disqualifying if your spouse was allowed to spend funds for your care. If it was restricted to her care only or her care plus her children, then it will not be disqualifying.
@dmertz is the best person to run you through the steps of correcting this.
