Can someone who is not working still get a HSA plan…and contribute to the HSA?
My DD is a student…and we would like the HSA option for her. She will be buying dorectly from the company…and we would give her money for the HSA.
Can we do that if she isn’t earning money?
She will not have a subsidized plan…and her state is not a Medicare expansion state…thus we will purchase directly from the company (looks like GA Kaiser).
There are TONS of options…and I have no idea where to point her. I think we will send her to a broker.
If she has her own insurance, she would need a high deductible plan (as defined by the IRS) to qualify to contribute to an HSA. If she has no income, there not much benefit to her contributing, as there is no tax deduction for her to take. If she is a student, any money you put into the HSA on her behalf would be considered a gift of money to her, and would be considered (non-taxed income) when filling out the FAFSA (and CSS Profile). How old is she? Why would you not carry her on your insurance if she is eligible?
Wanted to add, the one benefit would be if she doesn’t actually use the money in the HSA, and saves it for future medical expenses, as it would grow tax-free. But if she’s under 24 and a full time student, and doesn’t provide the majority of her own support, then she should be your dependent for tax purposes.
Agree you don’t need to be employed to contribute to an HSA but the plan that covers you must be an eligible plan.
What is your goal in having the HSA? Are you looking for a tax deduction for the contributions or just looking to make sure there are funds there to pay uncovered medical expenses? Are you looking for a way to help her with her expenses without having her to show income? Are you looking for a way to save long term with tax free growth?