Do You Have to Use Everything Contributed to an HSA in That Year?

One common misconception about Health Savings Accounts (HSAs) is that you have to use up all the funds contributed within a year. However, that is not the case.

HSAs are designed to be a long-term savings tool for healthcare expenses. Here are some key points to keep in mind:

• Contributions to an HSA do not expire at the end of the year. The money rolls over indefinitely and continues to grow tax-free.
• You can choose to use the funds in your HSA at any time for qualified medical expenses.
• If you don't use all the funds in your HSA by the end of the year, they remain in your account for future use.

It's important to note that the funds in your HSA are yours to keep, even if you change jobs or health insurance plans. This flexibility makes HSAs a valuable tool for managing healthcare expenses both now and in the future.

Don't worry about rushing to spend your HSA funds by the end of the year; they don't disappear after December 31st. Instead, think of your Health Savings Account as a financial cushion that continues to grow tax-free over time.