Can I Lose My HSA Money? Understanding the Risks and Benefits

When it comes to Health Savings Accounts (HSAs), one common concern that many individuals have is whether they can lose their HSA money. The good news is that in most cases, the funds in your HSA are yours to keep and are not subject to expiration or loss. However, there are certain scenarios where you could potentially lose your HSA money, so it's important to understand the risks and benefits associated with these accounts.

Ways You Could Lose Your HSA Money:

• Using HSA funds for non-qualified expenses
• Allowing your HSA to become inactive
• Leaving your employer who contributed to your HSA

Benefits of an HSA:

• Tax advantages
• Ability to save for future healthcare expenses
• Portable account that you can take with you even if you change jobs

It's important to familiarize yourself with the rules and regulations surrounding HSAs to ensure that you are maximizing the benefits of these accounts while avoiding any potential pitfalls.

When it comes to Health Savings Accounts (HSAs), many individuals worry about the safety of their funds. Rest assured, your HSA money is typically secure and doesn't expire, but there are pitfalls to be aware of that could impact your balance.

Potential Risks to Your HSA Funds:

• Spending HSA dollars on non-qualified medical expenses can lead to penalties.
• An inactive HSA can incur fees, gradually reducing your balance.
• If you leave a job where your employer contributed to your HSA, you may miss out on those contributions.

Key Advantages of HSAs:

• Enjoy significant tax benefits, including tax-free growth and tax-deductible contributions.
• HSAs allow you to save for future medical costs, giving you peace of mind.
• These accounts are portable, meaning they stay with you even if you switch employers.

To make the most of your HSA, understand its rules and avoid costly mistakes that could cost you your hard-earned money.