Compliance Q&A: Dependent Care FSAs, Employee & Spouse HSA Contributions, and ACA Lookback Periods

  • March 21, 2025
  • Posted by: Gus Altuzarra
  • Category: Compliance Q&A
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3.6.25 | DEPENDENT CARE FSA

 

Q. Can an employee still participate and receive reimbursements in the dependent care FSA if their spouse is a stay-at-home mom? Can they still contribute up to the $5,000 maximum as they are married and filing taxes jointly?

 

A. An employee cannot contribute to a dependent care FSA if the spouse is a stay-at-home mom. The only exceptions would be if the mom is actively searching for gainful employment, a full-time student, or physically/mentally incapable of self-care.


An employee who is married and filing jointly is limited to $5,000 per year in a dependent care FSA. But this is only available if the spouse is working or meets one of the limited exceptions above.

 

3.13.25 |  EMPLOYEE AND SPOUSE HSA CONTRIBUTIONS

 

Q. Prior to their marriage, a couple who are both employed were enrolled in separate HDHP plans and were contributing to separate HSAs. Now that they are married, he has switched to an Employee + Spouse enrollment in the medical plan and she had waived enrollment as an employee. However, she just learned that deductions are still being made and contributed to her HSA. Can the couple continue with this plan structure?

A. A husband and wife can each contribute to an HSA when they are enrolled in a family HDHP plan, however the maximum aggregate contributions of the husband and wife cannot exceed the family HSA maximum. The couple can continue like they are doing, as long as they don’t exceed to family maximum HSA contribution ($8,550 for 2025).

 

3.20.25 |  ACA LOOKBACK MEASUREMENT PERIODS

 

Q. When counting employees, can a group use a 5-month measurement period, a 1-month administration period, and a 6-month stability period? Do the measurement and stability periods have to be the same?

 

A. Yes, a group could use a 5-month measurement period, followed by a 1-month administrative period and a 6-month stability period. While the administrative and stability periods usually match, the stability period cannot be less than 6 months, so this approach should work.

Typically, the stability period matches the measurement period, but it does not have to match as long as the stability period is at least the longer of 6 months or the length of the measurement period. For example, a group could not have a 6-month measurement period and a 12-month stability period..

 

Answers to the Question of the Week are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.



Author: Gus Altuzarra
Gus is the CEO of Aston Sharp Insurance Services. In 2012, Gus founded Aston Sharp to start offering a larger scope of insurance products to his clients. With extensive history in life, disability, and long-term care planning, Gus acts as a full service insurance advisor. Gus initially started working with group employers offering assistance with the new changes mandated by the ACA (Affordable Care Act). The in-flow of new technology in recent years has created an opportunity to revolutionize an outdated industry. Gus now works to consolidate Employee Benefits, HR, Payroll, Work Comp, and ACA compliance all under one roof – delivering an easy-to-use technology driven solution to his clients.

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