A strategy for building generational wealth through HSAs: adult children on high deductible health plans can open family accounts with high contribution limits, taking advantage of tax deductions and gift tax rules to accumulate seven figures over time.
Give your kid a seven figure hsa. We're talking about adult children that happen to be covered by your high deductible health plan and no other plan, but are not your dependents financially. They're eligible not just to open a health savings account, but to open a family health savings account. Right. With the twice as high contribution limit and obviously money's fungible. You could give them $8,300 and they could put that $8,300 into an HSA. It's their HSA though. They need to open it. They're an adult. It's pretty cool little loophole. So they go and open an account, they put the money in, they get a deduction for it. It shows up on their taxes, not your taxes. Where that money comes from. Well, as long as you stand under the gift tax limits, it could come from you. Right? It doesn't have to be earned income that goes into an hsa. This isn't a retirement account. There's no earned income requirement. It can be somebody else's income.
Physician Takes a Youth Sports Team to the State Championship - MtoM Podcast #236
