Do Health Savings Accounts (HSAs) Need to Be Used in the Year They Were Accumulated?

Health Savings Accounts (HSAs) are a valuable tool for individuals looking to save and pay for medical expenses tax-free. One common question that arises is whether HSAs need to be used in the year they were accumulated. The simple answer is no, HSAs do not need to be used in the year they were accumulated. In fact, one of the key benefits of an HSA is that the funds roll over from year to year, allowing individuals to build up a savings cushion for future medical expenses.

Here are some key points to consider about using HSAs:

• HSAs have no expiration date, so the money in the account continues to grow tax-free until you decide to use it.
• Unlike Flexible Spending Accounts (FSAs), which have a
  

  Health Savings Accounts (HSAs) are a powerful financial tool that allow individuals to save for medical expenses without worrying about year-end deadlines. Unlike Flexible Spending Accounts (FSAs), HSAs offer the remarkable flexibility of rolling over funds indefinitely. This means you can accumulate savings year after year, building a robust financial cushion for any future healthcare needs.