Old HSA question (medical, plan, wife, retirement)

[NSHL10]

I have an old HSA account that I can no longer contribute to. It was opened when my family including children were on the plan. Now they are getting their own insurance.

Can I use the account to pay for my adult childrens' co pays etc or is the account only to be used for me and my wife who are the owner and POA on the account?

[teeej]

The only time you can use your HSA to pay for the healthcare costs of someone else is if you have named that person as a dependent on your most recent tax return.

https://hsastore.com/learn-hsa-family-friends.html

[NSHL10]

Ok thank you

[Flamingo13]

I thought an HSA had to be used in the year it was deposited in?

[NSHL10]

Originally Posted by Flamingo13

I thought an HSA had to be used in the year it was deposited in?

No HSAs can be carried forward. FSA have to be used within the year

[GWoodle]

Originally Posted by Flamingo13

I thought an HSA had to be used in the year it was deposited in?

FSA is used in the same year it was deposited.

HSA can be another long term retirement account. Can be invested & grow over the long term.

Key is to use it for medical expenses, not medical premiums.

For the OP these adult children may have to be living in your house as a dependent. If they are getting their own insurance they need to pay

[teeej]

Originally Posted by GWoodle

FSA is used in the same year it was deposited.

HSA can be another long term retirement account. Can be invested & grow over the long term.

Key is to use it for medical expenses, not medical premiums.

For the OP these adult children may have to be living in your house as a dependent. If they are getting their own insurance they need to pay

FSA usually allows some amount of carryover.

[dkf747]

Originally Posted by teeej

FSA usually allows some amount of carryover.

The only time I remember them carrying over was during the pandemic. FSA’s do not usually carry over. HSA’s do carry over. I assume that is what you meant, but added my comment anyway.

[teeej]

Originally Posted by dkf747

The only time I remember them carrying over was during the pandemic. FSA’s do not usually carry over. HSA’s do carry over. I assume that is what you meant, but added my comment anyway.

No..."In 2023, you can carry over up to $610. This means that if you have money left in your FSA at the end of the plan year in 2023, for any reason, you can keep up to $610 of it. The rest goes back to your employer. This is an increase from $550 in 2022."


https://smartasset.com/taxes/fsa-car...riod%20expires.

[dkf747]

Originally Posted by teeej

No..."In 2023, you can carry over up to $610. This means that if you have money left in your FSA at the end of the plan year in 2023, for any reason, you can keep up to $610 of it. The rest goes back to your employer. This is an increase from $550 in 2022."


https://smartasset.com/taxes/fsa-car...riod%20expires.

If I read that right, that is only an option an employer can offer. It’s not available to everyone with an FSA.