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Purdue University HR Interactive HSA Guide

NOTE: Purdue University is providing you with this tool for informational purposes to help guide you through the Health Savings Account (HSA) eligibility rules. This information does not constitute tax or legal advice. If you have specific questions about the implications of these plans for you, you are encouraged to seek professional tax or legal counsel.

Eligibility Rules

Interactive HSA Tool

Specific Situations

Children of Divorced Parents

  • For purposes of the HSA only, the child is considered the dependent of both parents. Therefore, either parent's HSA money may be used on the child.
  • If the child is not listed as a tax dependent and HSA money is used for their expenses, the money will be taxed.
  • If the employee is covering the child(ren) under his or her health insurance even if they are not a tax dependent, they can contribute up to the family maximum for HSA but may not spend the HSA money on the child(ren).

Adult Child

  • Adult child (tax-dependent - up to age 19 or 24 if full time student): the child’s out-of-pocket medical expenses can be paid with the primary account holder’s HSA. In other words, the parent can use their own HSA to pay for the child’s medical expenses.
  • Adult child (not tax-dependent, on parent's Consumer-Driven Health Plan (CDHP) through age 26): the child’s out-of-pocket medical expenses cannot be paid with the primary account holder’s HSA. If you have used HSA funds for this purpose, contact your tax advisor for further assistance.

Medicare Disclaimer

  • If an employee becomes disabled and enrolls in Medicare, they can no longer contribute to an HSA or have anyone else contribute on their behalf (such as Purdue) as of the first of the month in which the employee enrolled. The current HSA funds may be used to pay Medicare Part A and/or Part B premiums, as it is considered a qualified medical expense. If the disabled employee does not receive Medicare, they can stay on the CDHP just without the Purdue HSA contributions.
  • When the employee reaches age 65, they become eligible for Medicare. If they enroll in Medicare, they can no longer contribute to an HSA or have anyone else contribute to an HSA on his or her behalf (such as Purdue). If the employee does not enroll in Medicare, the employee may continue with his or her HSA. Note: When an employee retires after 65, Medicare entitlement has a lookback period of the shorter of the employee’s 65th birthday or 6 months beginning from the month in which the employee applies for Medicare (typically 2 months prior to wanting to begin Medicare coverage).
  • Applying to receive Social Security benefits requires enrollment in Medicare Part A; therefore an employee receiving Social Security benefits may not make or receive contributions to an HSA.

Terminating Employment with Purdue

The HSA funds in an employee's account will remain in his or her name, but the account will be switched to a retail account and the employee becomes responsible for the monthly account maintenance fees for the HSA.


Employees may elect to continue Purdue's CDHPs through COBRA, but will no longer receive contributions from Purdue to their HSA and can no longer contribute to the HSA via payroll deduction. The account remains theirs to pay for eligible health care expenses.


  • For more information on HSAs, visit Purdue's HSA page.
  • To manage your Health Savings Account, view eligible expenses, and access additional resources, visit HSA Bank.
  • To change your contribution to your HSA, review this quick reference guide.
  • For the IRS publication on HSA's and Other Tax-Favored Health Plans, click here.
  • For the IRS publication on Divorced or Separated Individuals, click here.