Do I Lose the Money in My HSA at the End of the Year?

One common misconception about Health Savings Accounts (HSAs) is whether the money in them expires at the end of the year. The good news is that unlike Flexible Spending Accounts (FSAs), the funds in your HSA do not expire at the end of the year. Here are some key points to understand about HSA funds:

• Contributions to your HSA roll over from year to year, so you won't lose any money that you don't spend within a year.
• The money in your HSA belongs to you, and you can keep it for as long as you want.
• HSAs offer a tax-advantaged way to save for medical expenses both now and in the future.
• You can invest the funds in your HSA to help them grow over time.
• It's important to note that there are contribution limits and eligibility requirements for HSAs, so be sure to familiarize yourself with these.

In conclusion, the money in your HSA is yours to keep, and it doesn't expire at the end of the year. This makes HSAs a valuable tool for saving and planning for your healthcare expenses.

Many people often wonder if the money in their Health Savings Accounts (HSAs) disappears once the calendar year ends; however, it's essential to clarify that HSAs function differently than Flexible Spending Accounts (FSAs). Your HSA funds will stay intact, rolling over each year without any fear of expiration.