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Question 2 of 5 in Health Insurance Decisions For Single Parent
I have an hsa plan and my employer has put money towards my deductible. Can I spend any of that for my child (who is on an individual insurance plan I bought, Not the group plan).
You can spend HSA funds on ANY dependent, whether or not the dependent is on an insurance plan. In fact, HSA funds are very flexible: if the employer provides a subsidy, the company gets a tax write-off but you, also, can put some of your own money into the HSA fund and get your own adjustment to income. This "adjustment" happens even if you do not file with scheduled deductions; on the first page of the 1040 immediately below the I.R.A. adjustment. The only rule is that you and your employer together do not deposit more than the government allows for that year. If both spouses have HSA plans, the child can be covered under either spouse but the total contribution for the family must abide by the federal limits. Your dependent child can never have his own plan, though, because one unshakeable rule is that you cannot open an HSA if you are claimed as a dependent on someoneâs taxes, even if you have your own earned income.