Can I spend money from a health savings account for my child?
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Asked September 17, 2012
A Health Savings Account, or HSA for short, is a special type of savings account that allows you to set aside money that is reserved for health care. HSA accounts can be purchased individually or offered as an employment benefit. Not all HSA plans include employer contributions, but whether your boss adds to your HSA has no effect on how the money can be used. However, Failure to use the HSA for medical care can result in fees or taxes that would otherwise not be levied against the account, however, unlike a flexible spending account, the funds carry over from year to year.
Contributions made by your employer do not affect who can receive funds from the HSA for medical care, and as the account owner, you have the option of spending the money in the account on any dependents, whether they are enrolled in your employers health insurance plan or covered by another plan. The key is that you must be the owner of any HSA's that your dependent uses, meaning that your children are not allowed to have separate HSA accounts.
To put it simply, you own the account and can apply it towards the medical care of all of your dependents as necessary. Dependents, even if they have their own income, are not allowed to own an HSA in addition to the one owned by a parent. In order for your child to set up an account of their own, they must be at least 18 years old and live in a separate residence. If they are listed on someone else's tax returns, they are not entitled to individual HSA accounts but can make use of your account as necessary.
Answered September 17, 2012 by Anonymous