HSA's for children only


Super Genius
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I was wondering if you wrote a HDHP/HSA on a child only plan. Can the parent paying for the premium open up an HSA account and fund it?
TTBOMK anyone can fund any HSA for anyone... but only the insured gets the Federal tax deduction on their income tax.

TTBOMK anyone can fund any HSA for anyone... but only the insured gets the Federal tax deduction on their income tax.

As I understand it, if there is an HSA account in the name of a minor child who is also a dependent, the parent can get the tax deduction. But my understanding might be wrong.

By the way, what the hell is "TTBOMK" for those of us who only speak English and not computer?

Another question is that if you had 4 HSA policies in a family, say mom, dad, college student son and college student daughter (each with own policy at different schools) and mom makes the premium payments for each policy, if mom and dad file a joint return (which would be normal) and each college kid had a job and each filed a return, how much can each person contribute to their HSA and who gets the deductions?

The way I read the law is that mom and dad could each put $2850 in their individual HSAs BUT would be limited to the family max deduction of $5650 but each kid could open an account and fund it with $2850 max and take the deduct on their returns.

However if you had four policies and the kids did not work (were in grade school) and did not file taxes, parents could fund EACH HSA with $2850, but since there was only one return filed, the max deduction would be $5650.

Why bother funding an HSA without the deduct? Because first, the funds grow tax free. Second, there is no tax when taking them out. True you miss the tax deduct, but two good things out of three is not bad. If I could, I'd put all the money I had into a bucket where it could grow tax free and where there was no tax on disbursements.

I don't know of any other vehicle where you can put money in, it grows tax free, you get to deduct the contribution, and there is no tax when you take it out. True, you can only spend it on health stuff... but so what? An HSA is still one hell of a good deal. To bad more people don't 'get it.'

I'm not a tax expert and there is probably more info in the link below if anyone has the time or interest to wade through some of the documents listed.


I sold a very fair amount of HSAs through 2005. When I called those clients back during their renewal period I asked all of them if they've funded their HSA. Everyone can guess what the answer is and you're right.