Can we have both HSA and DCFSA

Question

I was covered by my wife's HDHP with HSA plan from her employer with a deductible of 2500 (individual)/5000 (family). We recently became parents of a beautiful baby girl.I want to opt for health insurance for my daughter,me from my employer and wanted to know If my daughter qualifies for a DCFSA (Dependent Care FSA).My employer also provides Health care FSA but I read that I cannot have FSA when a spouse has a HSA. My wife will opt for HDHP HSA plan through her employer once she gets back to work in early January.

Our plan:

Daughter & Me - Aetna PPO + DCFSA (if qualified) - My employer

Wife - BCBS Anthem HDHP with HSA. - Her employer

Now can I opt for DCFSA for my daughter under my employer's health insurance even though my wife will have a HSA through her employer? If yes, How much is the contribution limit for DCFSA from my paycheck and how much will be contribution limit for my wife's HSA? Can we use HSA for all the members of the family for medical expenses or is it limited to only my wife's medical expenses?

Answer 1

Yes, you can have both a Dependent Care FSA and a medical HSA.

However, a Dependent Care FSA is NOT for health care coverage for dependents. It is for daycare and other related expenses (day camps, before/after school care, etc.), NOT medical bills. That's what the HSA is for.

The DCFSA decision should be independent of your heath care coverage. Compare your medical coverage with the FSA and your spouse's coverage with the HSA and see which one is better for you.

But can we use HSA funds for medical expenses for all 3 of us,say for paying my copay etc?

Yes the HSA funds can be used by the account holder, spouse, and dependents.

How much can my wife contribute for her HSA $3,450 for an individual or $6,900 for a family?

Check with her benefits department to be sure, but I believe if she is the only one on her insurance then you're subject to the individual maximum.

Also, if her employer contributes to her HSA be certain to take that into account. It may make a difference as to whether you and your daughter go on your insurance or hers.