Do You Lose Your HSA Contribution If You Don't Use It by the End of the Year?

Many individuals wonder if they will lose their HSA (Health Savings Account) contributions if they don't use the funds by the end of the year.

The great news is that HSA contributions rollover from year to year, so you don't lose your money if you don't spend it all before the year ends. This feature sets HSAs apart from FSAs (Flexible Spending Accounts), where unused funds typically don't roll over.

HSAs offer a range of advantages and flexibility when it comes to saving for healthcare costs. Here are some key points to note:

• HSA contributions are tax-deductible, reducing your taxable income.
• Funds in HSAs can be invested, allowing them to grow over time.
• Withdrawals for qualified medical expenses are tax-free.
• HSAs are portable, meaning you keep the account and funds even if you change jobs or health plans.

So, if you have an HSA, rest assured that your contributions will remain in your account, ready to be used when you need them for eligible medical expenses in the future.

Ever find yourself worried about your HSA (Health Savings Account) contributions? You can put those worries to rest! Your HSA contributions effortlessly carry over from one year to the next, meaning you don't forfeit any of your hard-earned money just because the year has come to a close.