Thanks for your response. I have a follow-up question on this, based on the articles published by HSA providers.
My daughter is covered under my family HDHP Plan, and she is filing as non-dependent (individual return).
There are multiple articles on the HSA account contribution by non-dependent adult children covered on the family HDHP plan. Please see the linked below.
#1. Because the employee’s HSA funds can’t be used for this dependent, the adult child may wish to establish a separate HSA for his expenses. However, there is something unique about this situation that many don’t realize. Because this child is covered on a family-qualified HDHP, opening a separate HSA would allow the child to contribute up to the allowed maximum family contribution of $6,750. So, the parent (your employee) could have an HSA and contribute the allowed maximum family contribution of $6,750 and the dependent adult child could contribute up to $6,750.
#2. As long as they are covered on the family qualified HDHP, adult children can contribute the full family HSA amount into their HSA account. The dependent's contributions will not reduce the amount their parents can deposit into their accounts.
I would appreciate your opinion in this matter.
