Can I leave my HSA to my children?


Editorial team Published on

Yes, you can use your Health Savings Account (HSA) to pay for your child's qualified medical expenses, but they must qualify as a tax dependent on your federal income tax return.

Key Rules for Using an HSA for Children

  • Tax Dependent Status: Your child must be claimed as a dependent on your tax return (or qualify as a dependent under IRS rules, such as in certain divorced or separated parent situations).
  • Insurance Coverage: Your child does not need to be enrolled in your High-Deductible Health Plan (HDHP). You can use your HSA funds for an eligible child's medical care even if they are covered under a different insurance plan or a spouse's plan.
  • No Double Dipping: You cannot use your HSA to pay for expenses that have already been reimbursed by another health insurance policy.

The Age 26 Rule vs. Tax Rules

Under the Affordable Care Act, you can keep your children on your health insurance plan until they turn 26. However, HSA rules are tied to tax dependency, not insurance coverage.

  • If your adult child is 24 or older (or otherwise no longer qualifies as your tax dependent), you cannot use your HSA funds to pay their medical bills, even if they are still listed on your health insurance plan.
  • If an adult child is covered by your family HDHP but files their own taxes as a non-dependent, they can open and fund their own HSA up to the full family maximum limit.

Read more about dependent criteria on the American Fidelity Guide or review general rules at Lively.