HSA Funds: Can I Use Them for My Children Under ACA Health Insurance?
HSA Funds: Can I Use Them for My Children Under ACA Health Insurance?
If you’re getting divorced and will be the custodial parent of your children, you may wonder if you can use funds from your Health Savings Account (HSA) to cover their medical expenses. Even though your children will remain on your spouse’s employer-sponsored health insurance, the IRS allows you to use HSA funds for their qualified medical expenses.
What is an HSA?
An HSA is a tax-advantaged savings account that allows you to set aside money for qualified medical expenses. Contributions to an HSA are tax-deductible, and earnings grow tax-free. Withdrawals for qualified medical expenses are also tax-free.
Can I Use HSA Funds for My Children’s Medical Expenses?
Yes, you can use HSA funds to pay for qualified medical expenses for your children, even if they are not on your health insurance plan. This is true even if you are divorced or separated from your spouse.
The IRS considers a child as a dependent of both parents for HSA purposes if they:
Are under 19 years of age,
Are a student under 24 years of age, or
Are permanently and totally disabled.
What Expenses are Considered Qualified?
Qualified medical expenses include:
Doctor visits
Hospital stays
Prescription drugs
Dental and vision care
Mental health care
Long-term care
Health insurance premiums
How to Use HSA Funds for Children’s Expenses
To use HSA funds for your children’s medical expenses, you will need to:
1. Open an HSA with a qualified HSA provider.
2. Contribute money to your HSA.
3. Keep track of your qualified medical expenses.
4. Withdraw money from your HSA to reimburse yourself for qualified medical expenses.
Conclusion
If you are getting divorced and will be the custodial parent of your children, you can use HSA funds to cover their qualified medical expenses. This can help you save money on healthcare costs.
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