Does My HSA Account Count on FAFSA?

When it comes to filling out the Free Application for Federal Student Aid (FAFSA), you may wonder whether your Health Savings Account (HSA) counts as an asset. The good news is that, in most cases, your HSA will not be counted as an asset on the FAFSA form. This is because the FAFSA form typically only asks for information about taxable income and untaxed income, but not assets like HSAs.

HSAs are considered tax-advantaged accounts that are earmarked for medical expenses. Since the funds in an HSA are meant to be used for healthcare costs, they are not typically categorized as assets for financial aid purposes. Therefore, having an HSA account should not negatively impact your eligibility for financial aid.

It's important to note that while your HSA account itself may not count on FAFSA, the withdrawals you make from your HSA to pay for non-qualified expenses could be considered as income on the FAFSA form. This is because any income you receive, including withdrawals from an HSA, may need to be reported on the FAFSA form.

As you dive into the world of financial aid with the Free Application for Federal Student Aid (FAFSA), a common question that arises is whether your Health Savings Account (HSA) is counted as an asset. The reassuring news for most is that HSAs are generally not considered assets on the FAFSA. Since the FAFSA primarily focuses on your income, both taxable and untaxed, it omits tax-advantaged accounts like HSAs from the asset calculations.