What Happens If I Don't Use My HSA Money?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. But what happens if you don't use the money in your HSA?

If you don't use your HSA money, it continues to roll over year after year, unlike Flexible Spending Accounts (FSAs) where you may lose unused funds at the end of the year. Here's what you need to know:

What happens to your HSA money if you don't use it?

When you contribute money to your HSA, it belongs to you forever. There is no expiration date, so you can let the funds grow over time and use them for qualified medical expenses whenever you need to.

Benefits of not using your HSA money:

• Tax advantages: The money in your HSA grows tax-free, and withdrawals for qualified medical expenses are also tax-free.
• Save for future healthcare costs: You can use your HSA funds for medical expenses in retirement when healthcare costs tend to increase.
• Emergency fund: Your HSA can serve as a backup fund for unexpected medical costs or during periods of unemployment.

So, not using your HSA money can actually be a strategic way to save for future healthcare needs and enjoy tax benefits along the way.

Don't worry if you have unused funds in your Health Savings Account (HSA); these funds are yours for the long haul. Unlike FSAs, HSAs allow your money to roll over despite how much you use each year.