When Do Children Lose Their HSA Coverage at Retirement?

Planning for retirement involves a thorough understanding of various accounts, including Health Savings Accounts (HSAs). These accounts offer numerous benefits for individuals and families, but many people are unsure about when their children may lose coverage under an HSA.

Children can remain covered under a parent's HSA until they are no longer considered dependents. Typically, children lose their HSA coverage at retirement when they are no longer considered dependents for tax purposes. This usually occurs when the child reaches the age of 26.

Understanding the rules surrounding HSA coverage for children is essential for proper financial planning. Knowing when coverage ends can help families prepare for any potential changes well in advance.

When navigating the waters of retirement planning, understanding Health Savings Accounts (HSAs) is crucial, especially regarding how long your children can be covered under your HSA. Typically, children remain eligible for your HSA until they reach the age of 26, according to IRS guidelines, at which point they no longer qualify as dependents for tax purposes.