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.