Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 3:23:50 AM

I have an HSA w/HDHP for 2017 for me, as a single. I married in 2017. She has an FSA w/PPO for 2017 for her and her kids. Will we be penalized doing our 2017 taxes?

We both work for the same parent company.  We chose to make no changes during our "life change event" when we got married, and continued contributing to our respective accounts.  We noticed during open enrollment for 2018 a bullet point that indicated if my spouse has an FSA, I cannot have an HSA.  Will we be in trouble (penalized) for our 2017 taxes?  We have not tried to use each other's FSA/HSA account money for anyone not on the plan for a given employee (I have not tried to use my HSA money for her or her kids, and she has not tried to use her FSA money on services for me)

0 5 637
5 Replies
Level 15
Jun 6, 2019 3:23:52 AM

Since you have your own HDHP you can continue to fund your HSA and use distributions for eligible medical costs as before. 

New Member
Jun 6, 2019 3:23:52 AM

How certain are you about that.  That sounds very logical, but I am finding many instances on the web that contradict that.

Level 15
Jun 6, 2019 3:23:54 AM

If you would like to share those sites stating contradictory opinions I would be happy to address your concerns.

New Member
Jun 6, 2019 3:23:55 AM

Here is one link.  There are some posters indicating as you are.  There is one, at the bottom, indicating the opposite, and that poster indicates he/she works in the HSA/FSA field.  My employer is also telling me it cannot (should not) be done.
<a rel="nofollow" target="_blank" href="https://money.stackexchange.com/questions/43089/wife-has-fsa-with-employer-and-my-new-employer-offers-an-hsa-plan-what-to-do">https://money.stackexchange.com/questions/43089/wife-has-fsa-with-employer-and-my-new-employer-offers-an-hsa-plan-what-to-do</a>

Level 15
Jun 6, 2019 3:23:57 AM

The IRS has addressed what I believe is your situation.  If I understand your situation correctly, you are described in the attached document as "Situation 1"
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-drop/rr-05-25.pdf">https://www.irs.gov/pub/irs-drop/rr-05-25.pdf</a>