Can You Only Spend What's in Your HSA? - Understanding HSA Spending

One common misconception about Health Savings Accounts (HSAs) is whether you can only spend what's in it. The answer is no, you are not limited to spending only the funds in your HSA. Here's how it works:

When you contribute money to your HSA, it belongs to you, and you can use it to pay for qualified medical expenses. However, if you need to pay for a medical expense that exceeds the balance in your HSA, you have other options:

• You can pay for the expense out of pocket and save your HSA funds for future use.
• You can reimburse yourself from your HSA later, as long as the expense was incurred after you opened your HSA.

It's important to keep track of your medical receipts and expenses, as you may need to provide documentation to prove that the expenses were qualified. Additionally, there are penalties for using HSA funds for non-qualified expenses, so make sure to use the funds for eligible medical costs.

Many people are unsure if they can spend only what is in their Health Savings Account (HSA) for medical expenses. The truth is, you're not bound to just the amount sitting in your HSA account. In reality, you have flexibility when it comes to managing your healthcare costs.

Your HSA funds are yours, and you can use them to cover qualified medical expenses. If a particular medical bill exceeds your HSA balance, don't worry! There are two main ways you can navigate this situation:

• Paying for the expense out of pocket allows you to keep your HSA funds for later use.
• You can also choose to reimburse yourself from your HSA at a later date, provided that the eligible expense took place after your account was opened.

Keeping track of receipts for your medical expenses is crucial, as you may need proof to demonstrate that the costs were for qualified treatments. Remember, using HSA funds for non-qualified expenses could result in penalties, so it's best to be cautious and informed!