Can non-dependent children open a separate HSA?

Yes! And this is a great opportunity. When the Affordable Care Act went into effect in 2010, it included a provision that children be allowed to remain on their parent’s health insurance plan until the age of 26.
This created a unique HSA provision that allowed those individuals to open an HSA (and contribute) as long as they are no longer a tax dependent. This is an incredible opportunity for young people to create a long-term health savings vehicle that can be used or invested for many, many years.

HSA Eligibility Requirements

  1. Individuals who are covered by their parent’s health plan
  2. Parent’s plan must be an HSA-eligible, high deductible health plan (HDHP)
  3. Less than 26 years of age 
  4. Cannot be claimed as dependent on anyone else’s taxes
  5. Has no other health insurance (other than parent’s health plan)
  6. Is not enrolled in Medicare

Not Required for HSA-Eligibility

  1. It's not required that the individual’s parents have an existing HSA or contribute to their HSA
  2. Parents can contribute to a family HSA at any contribution level and this will not affect the requirements above

HSA Opportunity

Younger individuals who are eligible can contribute the current year family contributions limit; assuming of course that your parent’s health plan covers your parent and you. This is unique in that an individual can open their ownHSA – separate from their parent’s – but are still allowed to contribute the family maximum.

This is an unprecedented HSA tax-savings opportunity!

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