Do You Ever Lose the Money in an HSA Account?

When it comes to Health Savings Accounts (HSAs), one common concern people have is whether they can lose the money in their account. The good news is that unlike Flexible Spending Accounts (FSAs), funds in an HSA do not expire at the end of the year. This means that the money you contribute to your HSA remains yours indefinitely, and you won't lose it as long as you follow the rules set by the IRS.

Here are some key points to keep in mind:

• HSAs are portable, meaning you can take your account with you if you change jobs or retire.
• Any funds left in your HSA at the end of the year roll over to the next year.
• You can invest the money in your HSA once it reaches a certain threshold, allowing it to grow over time.
• However, if you use the money in your HSA for non-qualified medical expenses before the age of 65, you will have to pay taxes on the withdrawal plus a penalty.
• After the age of 65, you can use the money in your HSA for any expense penalty-free, though you will still owe income tax if it's not for qualified medical expenses.

When it comes to Health Savings Accounts (HSAs), many people worry about the possibility of losing their funds. Rest assured, unlike Flexible Spending Accounts (FSAs), your HSA funds do not expire and will remain yours as long as you adhere to the IRS regulations. This makes HSAs a powerful tool for managing healthcare costs over the long term.