@musicmerit, I was answering someone’s question about HSAs. I’m not in the biz, so you’ll have to get expertise elsewhere. 
I’ve just remembered I have a FSA account with less than $10k in there earning some ridiculous small interest rate at my credit union. I don’t know if I want to submit expenses to use this account, I’m too lazy for the paper work. So my question, at what age can I convert this HSA to IRA. Is that a dumb idea tax wise.
Here’s a link to AskMrHSA:
https://askmrhsa.com/education/hsa-basics/
It looks like the website has a great deal of free basic info.
65 is the age.
Musicmerit - If I were you, in the first part of 2017 I think I would take this approach (from ASKMrHSA, above):
“You do not have to take the money out of you HSA every time you have an eligible expense, you may want to pay out of pocket and let it grow tax free.
Because money in the HSA account continues to grow tax-free and there is no time limit for withdrawals, many people deliberately pay for eligible expenses with other funds, effectively setting up a future tax-free withdrawal anytime in the future. In this case, keeping track of reciepts is very important, because at the time the money is withdrawn, especially if withdrawing a large sum from many years, you could be subject to an audit by the IRS to prove that you have spent the money on eligible expenses”
So, at least for the first part of 2017, when you might not know if your D will qualify as your dependent for that year, pay for her expenses out of pocket. If she does end up being your dependent for 2017, you can withdraw money from the HSA later in order to compensate yourself for those expenses. Or, depending on your cash flow situation at that point, you could just leave the money in there and let it grow tax-free, saving pertinent receipts.
Hubby and are are letting 6K or so sit in our HSA, slowly growing. We have enough eligible expenses to date that we could drain the account, but I see it as liquid funds that serve as part of our emergency fund, growing faster than money in a savings acct or CD would.
Attorney mother’s post above about FSAs confirms what I said earlier about FSAs – FSA funds can be used for medical expenses incurred by your child under age 27 at the end of your tax year.
(NOTE - this is true for FSAs, not HSAs)
I found where to invest HSA money. Two years ago I did call HSABank and then forgot to follow through. I would increase my account had I moved sooner. But it’s better late then never.
http://thefinancebuff.com/best-hsa-provider-for-investing-hsa-money.html
@musicmerit - If your daughter graduates in May that is already 5 months of the year that you were the one providing her support. Isn’t a dependent someone who is a full time student for at least 5 months of the year and under 24? As long as you provide the support for a month or more after she graduates I would think you would claim her for that year… But then again I’m not a tax accountant.
I think it depends on what kinds of wages @musicmerit’s daughter earns in 2016. We bought D a car, so it wasn’t an issue, but without that she would not have been our dependent that year even with a semester of college costs since she started work right after graduation and earned a nice salary.
It was weird not to claim her in 2014. I guess that really made us empty nesters.
The dreaded “dependent” test is here:
http://www.irs.gov/uac/Who-Can-I-Claim-as-a-Dependent%3F
Whether an adult child-student is a dependent has come up on other threads also, though I can’t find them now.