Q.- We have an employee whose husband participates in his own employer’s High Deductible Health Plan with HSA. The husband doesn’t contribute the full amount to his HSA. Since he doesn’t contribute the full amount, can the employee still make a contribution to our health FSA?
A.- It is our understanding that an individual who contributes, or has a spouse who contributes, to an HSA cannot also participate in an FSA (unless that FSA is a “limited purpose” FSA). This is the case even if the spouse does not make the full permissible HSA contribution. You should direct your employee to consult her personal tax advisor.