How ObamaCare Deals with HSA Plans and Your Children
As you may have heard HSAs are here to stay, even with the new Affordable Care Act plans. But what does this mean for you children? Well, even though the new HSA plans must meet all the rest of the ACA rules, there is one that can affect your children.
Children and HSAs
Per the ACA all children up to 26 are able to stay on their parents’ health plan, however this does NOT apply to HSAs. Why, you may ask. It’s because HSAs are a tax thing, therefore the IRS still has jurisdiction and the IRS has not updated its age limit for a dependent.
IRS HSA rules for Dependents
If a person can’t claim their child as a dependent they can’t use their HSA funds to pay for them. The following is the IRS definition of who qualifies:
HSAs have Contribution Limits
There are very specific guidelines and rules for HSA contributions each year. Even though there are specific guidelines you will always want to check with your individual plan for any other rules or limitations that may apply (such as a higher deductible than the HSA min deductible).
To learn about plans available now for your dependent or to enroll in a new ACA plan call 800-930-7956 or contact Medicoverage.