Family HSA or self?

[Time2]

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Originally Posted by pb4uski That's a interesting situation that I hadn't though of. So I assume that your "kids" are not dependents on your tax return but are under 26 and still on your HSA plan? fh2000 seems to be suggesting that you and your DW could contribute $7,100 and each of the two kids could contribute $7,100... so $21,300 in total. While I was skeptical because it seemed too good to be true, I found one source that indicated that it is true:

Yes, not dependent, but on my wife's HDHP, and would be allowed expenses to be covered by her HSA. However, if they were allowed to open their own HSA, I suspect, they could only use their own HSA funds?
Ya, I'm so lucky;-) a 29 year old and a 26 year old, still on our policy. I have run this by BCBS and they know the age of my kids and say that it is not a problem.

[SevenUp]

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Originally Posted by Time2 Yes, not dependent, but on my wife's HDHP, and would be allowed expenses to be covered by her HSA.

That's not the way it works, unless they fit a narrow exception.

See Pub 969:

Quote:

Qualified medical expenses are those incurred by the following persons. 1.You and your spouse. 2.All dependents you claim on your tax return. 3.Any person you could have claimed as a dependent on your return except that: a.The person filed a joint return; b.The person had gross income of $4,200 or more; c....

[fh2000]

Quote:

Originally Posted by Time2 Yes, not dependent, but on my wife's HDHP, and would be allowed expenses to be covered by her HSA. However, if they were allowed to open their own HSA, I suspect, they could only use their own HSA funds? Ya, I'm so lucky;-) a 29 year old and a 26 year old, still on our policy. I have run this by BCBS and they know the age of my kids and say that it is not a problem.

ACA allows 26 year olds to be added to the parent's policy. I am only aware that New York state also allows up to 29 years old to be added to the parent's policy. You must be in New York then.

[Time2]

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Originally Posted by fh2000 ACA allows 26 year olds to be added to the parent's policy. I am only aware that New York state also allows up to 29 years old to be added to the parent's policy. You must be in New York then.

I'm in Florida. I have ask about this at least twice.
And they said it is OK. Maybe I need to check again.

[Time2]

Sounds like my wife just needs to open up the HSA and cntrubute the family max plus $1,000.

[SevenUp]

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Originally Posted by Time2 I'm in Florida. I have ask about this at least twice. And they said it is OK. Maybe I need to check again.

Dependent Health Coverage and Age for Healthcare Benefits might be dated, but based on Statutes & Constitution :View Statutes : Online Sunshine it seems correct for Florida.

[pb4uski]

Quote:

Originally Posted by Time2 Yes, not dependent, but on my wife's HDHP, and would be allowed expenses to be covered by her HSA. However, if they were allowed to open their own HSA, I suspect, they could only use their own HSA funds? Ya, I'm so lucky;-) a 29 year old and a 26 year old, still on our policy. I have run this by BCBS and they know the age of my kids and say that it is not a problem.

If they are not a dependent* then you or your wife cannot use HSA funds for their medical expenses. They could open an HSA and use their HSA funds.

The thing that is not a problem is them being on your policy... which is a whole different question/issue from what are eligible medical expenses for the purose of HSA withdrawals.

* or meet one of the exception

[fh2000]

OP,

We in California encountered another restriction. Once we switched to ACA policy, we can no longer add our independent adult child to our policy. They have to purchase their own policy.

It is not clear if your DW is on her megacorp policy, or ACA policy.

[Time2]

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Originally Posted by SevenUp Dependent Health Coverage and Age for Healthcare Benefits might be dated, but based on Statutes & Constitution :View Statutes : Online Sunshine it seems correct for Florida.

Thanks for that link, now to understand it?
"A policy that is subject to the requirements of subsection (1) must also offer the policyholder or certificateholder the option to insure a child of the policyholder or certificateholder at least until the end of the calendar year in which the child reaches the age of 30, if the childa) Is unmarried and does not have a dependent of his or her own;
(b) Is a resident of this state or a full-time or part-time student; and
(c) Is not provided coverage as a named subscriber, insured, enrollee, or covered person under any other group, blanket, or franchise health insurance policy or individual health benefits plan, or is not entitled to benefits under Title XVIII of the Social Security Act."


Section (1) says, "must also offer the policyholder or certificate holder the option to insure a child // reaches the age of 30"

Subsection (a) says, "Is unmarried and does not have a dependent of his or her own;"
Our child is married, I read this as, the Ins. Co. must give the option to cover the unmarried 30yr old, but doesn't say you can't give a married child coverage on a parents policy
up until 30 yrs old.
Discussion?

[SevenUp]

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Originally Posted by Time2 ...I read this as, the Ins. Co. must give the option to cover the unmarried 30yr old, but doesn't say you can't give a married child coverage on a parents policy up until 30 yrs old.

That appears correct.

[rodi]

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Originally Posted by pb4uski I think you're mistaken on that.... only individual adults can have HSAs... if you look at the titling on your HSA statement it will only be for one adult person.... it doesn't list your kids does it? However, HSA money can be used for eligible expenses of you, your spouse or your dependents:

I think we're saying the same thing differently. My account was in my name- but had the extra amount to bring it up to the family max. Plus the catch up amount. DH had an account in his name - but was a lower, individual amount. The total contributions combined, for the two accounts had to be under the family max, plus catchups...

So, yes, you are correct that what I called the family account was titled in my name... but since I also had the extra, allowable, contribution under the family limits... I think of it, and call it, the family account (to cover the dependent kids.)

Now that DH is on medicare - my account is the full family amount ($7100) vs the $3550 for individuals for 2020. So in my head (and many of the articles written about it) it's the family account.