If a daughter is self-employed (not W2) and sets up a HSA, Is it possible to setup an HSA account in the name of the mother & daughter? The goal is to have the options to pay for in-scope healthcare expenses of daughter (& daughter's children) + mother. Daughter has her own company and will setup the HSA with a bank. Both the mother and daughter will contribute to the HSA.

Update: assume the mother is on Medicare and the daughter (and her daughter's children) are on a high deductable plan. Hopefully, it is apparent that by pooling the money, it provides the family the ability to support one another.

  • Since it's going "up" the chain instead of down, that's a tricky question. They should ask the bank running the HSA. – RonJohn Jan 12 at 4:57
  • Who has the High deductible plan, and who is covered by that plan? – mhoran_psprep Jan 12 at 13:35
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    Unless the mother is a dependent of the daughter, I don't see why this would be allowed. The mother's heath-care expenses are not the daughter's, and the mother isn't on the daughter's insurance plan. – chepner Jan 12 at 16:55
  • @chepner Thanks for commenting: are there any reference hyperlinks to address: Who can (or any restrictions \ limitations) be named to a single HSA account? If the mother and daughter were on the same HSA account, would not the medical expenses of the mother & the daughter be eligible? – gatorback Jan 12 at 17:38
  • This title no verb. – Aganju Jan 12 at 19:42

HSA accounts can only have one owner:

... You can’t have a joint HSA.

Consequently the tax deduction for HSA contributions can only be taken by the owner of the HSA account. Even a married couple would have to have two separate HSA accounts if both of their employers were contributing to their HSA accounts. But you still may be able to accomplish what you want, if certain conditions are met.

Eligible medical expenses include those for you, your spouse, your children, and any other dependents you can legally claim. In your scenario the grandmother would not be eligible to contribute to an HSA if she is on medicare. But the mother could, and then the mother could use that money for herself and her children. If she can claim her mother as a dependent, then she could also use the HSA funds for her mother's expenses.

Separately (and regardless if she is a dependent of the mother), the grandmother could choose to give (gift) the mother some money to put into her HSA account if she wishes, but note this would reduce the mother's income, not the grandmother's.

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  • Thanks for commenting. Please consider adding reference links for each paragraph for learning more / rules, – gatorback Jan 12 at 19:07
  • @gatorback - I added some links to the specific HSA rules I mentioned. – TTT Jan 13 at 0:22

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