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What Can I Do With My HSA Money?

Published May 29, 2024

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Short answer: You can use an HSA to pay for qualified medical expenses, save for future healthcare (even into retirement), invest if your provider allows, and after age 65 use funds for non-medical expenses without penalty (but taxes apply).

How HSA funds can be used

If you have a Health Savings Account (HSA), you may be wondering what you can do with the money in it. An HSA is a tax-advantaged account that allows individuals to save and pay for qualified medical expenses. Here are some ways you can use your HSA funds:

  • Pay for medical expenses: You can use your HSA funds to pay for a wide range of medical expenses, including doctor visits, prescriptions, and deductibles.
  • Save for the future: If you don't have many medical expenses now, you can save your HSA funds for future healthcare costs, even into retirement.
  • Invest your funds: Some HSA providers allow you to invest your funds, potentially allowing them to grow over time.
  • Use for non-medical expenses: After age 65, you can use HSA funds for non-medical expenses without penalty, though you will owe taxes.

Your Health Savings Account (HSA) is a powerful tool that can help alleviate many of your medical expenses. With your HSA, you can cover costs such as copayments, dental procedures, and vision care—all of which can put a dent in your wallet!

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