What Can You Do with Unused HSA Funds? Exploring Options for HSA Account Holders

Health Savings Accounts (HSAs) are a valuable tool for saving and paying for medical expenses with tax advantages. However, account holders may wonder what happens to their unused HSA funds at the end of the year or when they no longer have a high deductible health plan. Let's explore the options available for managing unused HSA funds:

Options for Unused HSA Funds:

• Roll Over to the Next Year: HSAs offer the flexibility to roll over unused funds from year to year without any penalty. This means your HSA balance continues to grow tax-free.
• Use for Qualified Medical Expenses: You can use your HSA funds to pay for a wide range of qualified medical expenses, including healthcare services, prescriptions, and more.
• Save for Retirement: After age 65, you can withdraw HSA funds for non-medical expenses without penalty (though you'll pay income tax on withdrawals not used for medical expenses).
• Pay Off Past Medical Bills: If you had medical expenses that were paid out of pocket, you can reimburse yourself from your HSA at any time, even years later.
• Beneficiary Designation: Upon your passing, you can designate a beneficiary who can inherit your HSA funds tax-free.

It's essential to understand the rules and regulations governing HSA funds to make informed decisions about managing your account. By exploring these options, HSA account holders can maximize the benefits of their funds and plan for future healthcare needs.

Health Savings Accounts (HSAs) are a remarkable financial tool that helps individuals save for healthcare expenses while enjoying tax benefits. Did you know that any unused HSA funds at the end of the year will not go to waste? In fact, HSAs allow you to roll over these funds into the next year without penalties, ensuring your savings grow tax-free!