HSAs work in combination with a “qualified” High Deductible Health Plan (HDHP). AURA’s Consumer Driven Health Plan is a qualified HDHP. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical expenses.
An adult child must still be considered a tax dependent in order for their medical expenses to qualify for payment or reimbursement from a parent’s HSA. This means that an employee whose 24-year-old child is covered on their HSA-qualified health plan is not eligible to use HSA funds to pay that child’s medical bills unless the child qualifies as a tax dependent. An adult child may be eligible to set up their own HSA as long as they are covered by a CDHP up to the full family HSA amount into their HSA account.
Employees reaching retirement age should speak with their financial advisors for more information regarding retirement planning decisions.