You May Keep Your Dependent On Your Insurance for 26 Years
Because of changes enacted by the Affordable Health Care Act, health care coverage for an employee’s children, through age 26, is generally tax-free. Employees who are eligible to contribute to cafeteria plans are allowed to make pre-tax contributions to pay for this expanded benefit. The IRS considers a child to be one’s son, daughter, stepchild, adopted child, or eligible foster child.
Additionally, the Affordable Care Act requires that dependents being provided coverage via their parent’s plan be eligible to remain on that plan until they reach age 27.
For more information read, Tax-Free Employer-Provided Coverage Now Available for Children under Age 27
