Do You Have to Spend Your HSA Every Year?

One common question among individuals who have a Health Savings Account (HSA) is whether they are required to spend the funds in their account each year. The simple answer is no, you are not required to spend your HSA balance every year. Unlike Flexible Spending Accounts (FSAs), where funds typically must be used by the end of the plan year or they are forfeited, HSAs do not have a 'use-it-or-lose-it' rule.

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

• HSAs allow you to save and invest money for healthcare expenses now and in the future.
• There is no deadline for spending the funds in your HSA.
• You can let the money in your HSA grow and accumulate over time.
• You can use the HSA funds for qualified medical expenses at any point without penalty.
• It's important to keep track of your expenses and save receipts in case of any audits or questions about your HSA spending.

By understanding the flexibility and long-term benefits of an HSA, you can make informed decisions about how and when to use your funds for healthcare needs.

One of the great advantages of a Health Savings Account (HSA) is the freedom to manage your funds the way you choose. Unlike Flexible Spending Accounts (FSAs), which have strict deadlines for using your money or risk losing it, HSAs provide you with the flexibility to carry over your balance from year to year.