Your FSA election would disqualify your spouse to be eligible for an HSA. Any HSA contributions made during your coverage period in the FSA would need to be removed from your spouse’s HSA before he/she files income taxes. As long as the ineligible funds are removed from the HSA prior to filing taxes, there will be no penalty.
 
An excess distribution will need to be requested from the HSA custodian. WEX Inc. requires the HSA Distribution Form to be completed and returned to create an excess distribution. Excess distributions cannot be created through the website benefit-info.com/iu.