Are there disadvantages to having both a flexible spending account (FSA) and a health savings account (HSA)?
My wife works for a major healthcare insurance company, and we are both covered under her benefits. We have chosen the health savings account (HSA) for our health care needs. She was told that she could not participate in the flexible spending account (FSA) program and be in the HSA at the same time.
I am still using my FSA with my employer. Is this going to cause any issues for me down the road?
No it should not since you will be using your FSA funds for different expenses. The government doesnt want taxpayers double dipping by using the FSA to pay for medical expenses and then using the same expenses as justification for a reimbursement from an HSA. Use your FSA for your healthcare expenses and your wife can use her HSA for her expenses.
An even better strategy would be to maximize contributions into the HSA and not use the funds for any healthcare expenses until retirement (so long as cash flow permits this savings expense). Let the funds accumulate and grow over time. Most HSAs have the option of investing a portion into a set of mutual funds or other diversified holdings. I recommend you dont invest it all, leave some in cash to the tune of a2 years or so of deducitibles in case you have a medical emergency. As this money grows overtime in the HSA - you will create a tax free (tax exempt growth as well) bucket to draw off of in retirement for health care related expenses. You will never have too much in an HSA with the projected cost of healtcare in retirement.