Do You Have to Spend the Money in Your HSA by the End of the Year?

One common misconception about Health Savings Accounts (HSAs) is that you have to spend all the money in them by the end of the year. However, the beauty of an HSA lies in its unique features that differentiate it from Flexible Spending Accounts (FSAs).

Unlike FSAs, the funds in an HSA do not have to be spent by the end of the year. This is a major advantage as it allows you to save and invest the money in your HSA for future medical expenses, including those in retirement.

Here are some key points to remember about spending money in your HSA:

• HSAs have no
  

  It's a common myth that Health Savings Accounts (HSAs) require you to deplete your funds by the end of the calendar year, which is not the case. Unlike the rules for Flexible Spending Accounts (FSAs), HSAs allow your money to remain in the account indefinitely, giving you greater flexibility to plan for future healthcare costs.