@Apples 521 wrote:
Thanks Mike9241. I'm thinking I'll go the route of withdrawing the excess.
My wife's FSA was in effect April 1. It may not actually be an FSA- her benefit packet called it a Section 125 Cafeteria plan. She gets $1,800 reimbursed for medical or childcare costs. She doesn't (and can't as far as I'm aware) contribute anything to it, its just there as a use it or lose it benefit.
Thanks for your help and happy to engage any other advice from others.
You need to get exact clarity on this. If this is an FSA (flexible spending arrangement for medical care) then, by operation of law, she can use the funds for herself or her spouse or her dependents. The employer can't exclude you. This counts as "other medical coverage" for you and absolutely bars you from contributing to an HSA, even if you don't actually use the funds for your care.
If this is an HRA (health reimbursement arrangement), then the employer is allowed to set the terms, including excluding a spouse. If your spouse has an HRA that pay for employee expenses only and excludes spouse and children, then your spouse can't make HSA contributions but you probably can.
