When two parents share custody of a child, questions often arise about whether the child (or children) qualifies as an eligible dependent for Health Spending Account (HSA) claims. The answer is: yes, a child in a shared custody arrangement can be an eligible dependent, provided certain conditions are met.
Key Criteria for Eligibility
To qualify as an eligible dependent under an HSA, the following requirements must be satisfied:
Relationship to the Plan Member
The child must be related to the HSA member by blood, marriage, common-law partnership, or adoption. This ensures the dependent relationship is recognized under the Canada Revenue Agency’s (CRA) guidelines.
Financial Reliance
The child must be financially dependent on the HSA member. There is no age limit, as long as the child is dependent on the parent for their cost of living.
Shared Custody and Residence
Even if the child resides in two homes due to a shared custody arrangement, they can still qualify as an eligible dependent. As long as the child is living part-time in the HSA member’s home as part of the custody agreement, they meet the residency requirement.
It's important to be extremely cautious to avoid submitting duplicate claims between the co-parent's insurance or Health Spending Account plans.
Understanding dependent eligibility ensures that families in shared custody arrangements can maximize their HSA benefits. Whether it’s for medical, dental, or wellness-related expenses, knowing that your child qualifies as an eligible dependent provides peace of mind and financial support for their needs.
If you’re ever in doubt, reach out to our support team at support@getmyhsa.com to confirm specific requirements and ensure your claims are processed without delay.