Does HSA Money Last Forever? Understanding the Longevity of Your HSA Savings

One common question many individuals have about Health Savings Accounts (HSAs) is whether the money in them lasts forever. The short answer is yes, HSA funds do not expire and can continue to grow over time.

HSAs are unique in that the money you contribute rolls over from year to year, unlike Flexible Spending Accounts (FSAs) where funds typically must be used within the plan year. This makes HSAs a valuable tool for saving for future healthcare expenses.

Here are some key points to keep in mind about the longevity of HSA money:

• HSA funds do not have an expiration date.
• You own the funds in your HSA account, even if you change jobs or health plans.
• Your HSA funds can be invested, allowing them to potentially grow over time.

It's important to note that while HSA funds do not expire, there are penalties for using them for non-qualified medical expenses before the age of 65. After turning 65, you can withdraw funds for any purpose penalty-free, though income tax may still apply if not used for qualified medical expenses.

In summary, HSA money does last forever in the sense that it remains in your account and can continue to grow without expiration. Understanding the rules and benefits of HSAs can help you make the most of this valuable savings tool for healthcare costs both now and in the future.

Many people are curious about whether the money they save in their Health Savings Accounts (HSAs) is everlasting. The answer is a resounding yes! Not only do HSAs allow your funds to roll over year after year, but they also serve as a nest egg for healthcare needs well into the future.