@k3offline I need to clarify my FSA and HSA response. In order to have both an HSA and FSA coverage in a family unit, the FSA needs to be a specific purpose FSA. In other words the FSA can only be used for eligible vision or eligible dental expenses exclusively
For your HSA account, you can only be covered by a HDHP. Your spouse's FSA would be considered additional medical coverage other than the HDHP, as their FSA would be able to pay all family medical expenses.
That being said, assuming spouse's FSA coverage includes all family medical expenses, your 2020 HSA contributions would need withdrawn by the filing deadline of your return or pay a 6% excise tax on your 2020 excess contributions.
The excise tax applies to each tax year the excess contribution remains in the account. You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.
- You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
- You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw
The excise tax is reported on Form 5329.
Click here for more information from Publication 969 that discusses HSA, FSA, HRA
[Edited 3/15/21 3:40 PDT]
