HSA w/Adult Child

[WookieeStache]

My adult son from a previous marriage is covered on my HDHP (employee+child option) which includes an HSA.  My company and the company administering the HSA considers this a "family" type of plan so I get the family plan employer contribution as part of my yearly compensation. 

My questions lies in if I am eligible to contribute up to the family maximum for this HSA account?  I know I can't use the HSA funds for my son's medical expenses, but if I can contribute up to that family max I will.

Thank you for your help in advance.

[charis]

Why can't you use the HSA to pay for son's expenses if he is covered by your plan? If your employer allows you to contribute up to the family contribution max, I think that answers the question of whether you can do it.

[WookieeStache]

If they are not a tax dependent you cannot use HSA money for qualified medical expenses.

I'm concerned about the "employer letting me" vs the "IRS allowing it" potential conflict. 

[therethere]

In your situation you can contribute a family maximum, since you have a family plan. But if they are not a tax dependent you can't use the funds on them.

[DaMa]

I was in the same situation with my non-dependent son in 2017 and 2018.  You can contribute the family amount to the HSA.  Your son can also have an HSA and contribute up to the family amount.  It's one of the loopholes in the legislation.

You canNOT use your HSA to pay for his claims.

I don't believe there are any limits on how much your employer can contribute (up to max allowed).  The employer sets those rules for themselves.

[WookieeStache]

Just to be 100% clear (and I apologize for not putting this in my original question), I can contribute up to the family maximum using pre-tax money?  Or will I have to pay taxes on that difference between the single and family HSA max?

[DaMa]

Yes.  Your contribution + employer contribution up to $7300 total for 2022 in your HSA.

[terran]

Family plan means family limit. In fact, if your son isn't your dependent then he can also contribute to his own HSA up to the family limit since he meets the requirements of not being someone else's dependent and being covered by a family HDHP.

[DaMa]

My son was working at the time and turned 26 in late 2018.  His employer insurance was far worse than mine.  He anticipated no claims (correctly) and did not go for the HSA.  At the time, I was not aware of any zero cost HSAs.  Today, I would have him open a no cost HSA with Fidelity and put $100 in.  I would encourage him to fully fund it, but if he can't afford that, at least with it open more money could be added if claims come up.

You can pay any medical claims with HSA funds incurred once the HSA account is open.  After that the limits are on when and how much contributions can be made.

For example:
1/5/22     HSA opened with $100.
4/14/22   Claim for $200 incurred
5/1/22     Deposit $200 in HSA.
5/2/22     Withdraw $200 from HSA to pay 4/14 claim
Son files 2022 taxes and deduct $300 for HSA contribution.

The point is that the money doesn't have to be in the account before the claim comes up.