How to Determine HSA Account Balance at End of Year

Health Savings Accounts (HSAs) are a great way to save for medical expenses while also reducing your taxable income. At the end of the year, it's essential to know how to determine your HSA account balance to plan for future expenses. Here are some steps to help you calculate your balance:

1. Check your HSA provider's online portal or mobile app: Many HSA providers offer online platforms where you can easily access your account balance, transactions, and contributions.
2. Review your account statements: If you prefer a more traditional approach, you can review your account statements either online or via mail to track your HSA contributions and expenses throughout the year.
3. Calculate your total contributions: Add up all the contributions you made to your HSA account during the year. This includes contributions made by you, your employer, or anyone else on your behalf.
4. Subtract any withdrawals or qualified expenses: Deduct any withdrawals or qualified medical expenses you paid for using your HSA funds throughout the year. These are tax-free withdrawals as long as they are used for qualified medical expenses.
5. Account for any investment gains or losses: If you have invested your HSA funds, consider any investment gains or losses that may affect your account balance. You may need to consult your financial advisor for this step.
6. Plan for the next year: Based on your HSA account balance at the end of the year, you can plan for future medical expenses and contributions for the upcoming year. This will help you maximize the benefits of your HSA.

Understanding your HSA account balance at the end of the year is crucial not only for managing your medical expenses but also for optimizing your tax savings. Start by logging into your HSA provider's online portal, which often provides a clear view of your balance and contributions over the year.