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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Crystal1588 on October 29, 2015, 09:34:35 AM

Title: Need Advise -- HSA / Flex Spending / Daycare Costs
Post by: Crystal1588 on October 29, 2015, 09:34:35 AM

Hi-
I am going through some open enrollment headaches and need some advice.

I work full time, as does my husband.  We both have health insurance options through our employers.  I will be on my employer's plan with our 2 kids.  Cost is only $52/month for pretty good coverage.  I am also eligible for an FSA.  I currently use it for both medical and daycare costs.

My husband has 3 levels of insurance and is leaning towards using the high deductible one.  Basically, he would only pay $33/month and his max OOP is $4,000 for himself.  He is young, healthy and rarely uses the doctor except for an annual routine physical.  We have $4,000 readily available if he were to run into a health crisis. 

Now for my question.  I am reading that you can not use an HSA if your spouse contributes to a flex spending account.  But does that count for daycare expenses?  Could I still put $5,000 into my flexible spending account for daycare expenses and have him put $3300 into an HSA for our family medical costs?  Can I draw on his HSA for our kids or myself even if we're not covered by the high deductible plan?  We also are planning on retiring in about 5-7 years and like the benefit of having money set aside for either medical costs or retirement in a tax advantaged account.

I just want to make sure we're understanding it correctly. 

Any input appreciated!

Title: Re: Need Advise -- HSA / Flex Spending / Daycare Costs
Post by: ABC123 on October 29, 2015, 10:47:34 AM

The daycare FSA has nothing to do with the health care stuff.  So yes, you can absolutely do the daycare one no matter what your husband is contributing to a HSA.  And yes, my hr department said my husband (who is on his employer's PPO plan) can use my HSA (I have the HDHP.)  So you should be fine there.

Title: Re: Need Advise -- HSA / Flex Spending / Daycare Costs
Post by: rayt168 on October 29, 2015, 11:47:31 AM

Quote from: ABC123 on October 29, 2015, 10:47:34 AM

The daycare FSA has nothing to do with the health care stuff.  So yes, you can absolutely do the daycare one no matter what your husband is contributing to a HSA.  And yes, my hr department said my husband (who is on his employer's PPO plan) can use my HSA (I have the HDHP.)  So you should be fine there.

+1  - just agreeing.  They are independent of each other.