What Can I Do with Unused Money in HSA?

Having unused money in your Health Savings Account (HSA) can be a common situation for many individuals. Thankfully, there are several options available to you to make the most out of these funds:

1. Save for Future Healthcare Expenses: You can keep the money in your HSA to use towards future medical costs, including deductibles, copayments, and other qualified healthcare expenses.
2. Invest the Funds: If your HSA provider offers investment options, consider growing your unused funds through investment opportunities.
3. Use for Retirement: Once you reach the age of 65, you can withdraw funds from your HSA for non-healthcare expenses without penalty, although regular income tax will apply.
4. Transfer to Spouse's HSA: If your spouse has an HSA, you can transfer the unused funds to their account tax-free.
5. Donate to Charity: You also have the option to donate the money in your HSA to a qualified charity.

Having unused money in your Health Savings Account (HSA) can feel like leaving money on the table, but there are numerous ways you can take advantage of those funds. Here are some options:

1. Consider saving for future healthcare expenses, such as out-of-pocket medical costs, dental care, or vision expenses, ensuring you're covered when those needs arise.
2. If your HSA provider allows, investing your funds in stocks, bonds, or mutual funds could grow your savings even more, making it a smart long-term strategy.
3. Your HSA is not just for medical expenses; upon reaching 65, you can withdraw for non-medical expenses without facing a penalty, though regular income tax will still apply.
4. If you have a spouse with an HSA, transferring some unused funds into their account can help them manage their healthcare expenses better, tax-free.
5. An increasingly popular option is donating any unused funds to a qualified charity, allowing you to support causes you care about while utilizing your HSA.