Do I Have to Use All Funds from a HSA by the Year End?

One common misconception about Health Savings Accounts (HSAs) is that you have to use up all the funds by the end of the year. However, this is not the case with HSAs. Unlike Flexible Spending Accounts (FSAs), the funds in an HSA do not expire at the end of the year.

With an HSA, you are not required to spend all the money within a specific timeframe. You can let the funds roll over from year to year, allowing you to build up savings for future healthcare expenses. This flexibility is one of the many advantages of an HSA and sets it apart from other types of healthcare accounts.

The myth that Health Savings Accounts (HSAs) require you to spend all the funds by the year-end can lead to unnecessary stress. Fortunately, HSAs are structured to allow your savings to roll over from year to year, so you can build a nest egg for your future healthcare costs.