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AgentMonkey t1_iubbzzt wrote

Reply to comment by kaprin_02 in My spouse and I work for the same company, in 2023 she will be a dependent on my Medical, can I have an HSA and she get an FSA? by miscshsf

Yeah, in that case, it makes sense. If you're maxing out the HSA with no intention of touching it, and still have funds to contribute to the limited purpose FSA that you know you will use during the year, then it's worth getting the tax savings.

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miscshsf OP t1_iud8kk6 wrote

Let me clarify, I would continue to contribute to and max out my HSA in 2023 as I've always done. Since my wife would be a dependent on my Medical next year (and cannot contribute to her own HSA) and we're bound to have medical expenses, I thought we could use those FSA contributions to pay for expenses. I think u/kaprin_02 and I are trying to do the same thing?!?

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AgentMonkey t1_iud9xdx wrote

Yeah, sounds like that makes sense. Keep the HSA for investing, and use the FSA for known expenses. Just be aware that if your wife has a regular FSA, then neither of you can contribute to an HSA. The FSA counts as other coverage and disqualifies both of you from HSA eligibility. On the other hand, a Limited Purpose FSA would be compatible with the HSA, but would only cover Vision and Dental (and, I believe, medical expenses after you've hit your deductible). So, be aware of the limitations there.

With the two of you on a plan together, you'll qualify for the family HSA contribution limit, if you're not already (I don't know if you have any kids covered on the plan currently). So, that may increase your limit.

> Since my wife would be a dependent on my Medical next year (and cannot contribute to her own HSA)

Sure she can. Since she would be covered by an eligible plan, she absolutely can contribute to her own HSA (keeping in mind the FSA note, above). She may not be able to do it through payroll deductions, but she can contribute. It's largely a matter of how you divide your finances, though, since either HSA can be used for expenses either of you incur. The two of you together cannot contribute more than the family limit, but how you divide up those contributions is up to you.

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miscshsf OP t1_iueow8u wrote

> The FSA counts as other coverage and disqualifies both of you from HSA eligibility. On the other hand, a Limited Purpose FSA would be compatible with the HSA

How do we know if the FSA is a Limited Purpose FSA?

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AgentMonkey t1_iuepsv9 wrote

It should be specified when you sign up for it. Talk with your HR to get the details.

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miscshsf OP t1_iuet2wb wrote

Will do, thanks for all your help these past 2 days!

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