Can I Borrow from My HSA? Understanding HSA Regulations

If you are wondering whether you can borrow from your HSA, the answer is both yes and no. Health Savings Accounts (HSAs) offer a great way to save for medical expenses while enjoying tax benefits, but there are specific regulations that govern how funds can be used.

Here’s what you need to know:

• Can I borrow from my HSA? - Though you cannot technically borrow from your HSA, you can reimburse yourself for eligible medical expenses paid out of pocket.
• HSA contributions and withdrawals - You can only withdraw funds tax-free from your HSA to pay for qualified medical expenses.
• Penalties for non-qualified expenses - If you withdraw funds for non-qualified expenses before age 65, you may face income tax and a 20% penalty. After 65, you will pay income tax only.

It’s important to understand the regulations surrounding HSAs to avoid penalties and make the most of your healthcare savings.

While it might feel like borrowing, remember that accessing your HSA funds means reimbursing yourself for eligible medical expenses already incurred, not taking a loan from your savings.