What Happens to HSA Money at the End of the Year?

Have you ever wondered what happens to HSA money at the end of the year?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. However, many people are unsure about what happens to the money in their HSA at the end of the year.

Unlike Flexible Spending Accounts (FSAs) that have a

As the year draws to a close, many people find themselves asking what will happen to their HSA (Health Savings Account) funds. Don’t worry! The beauty of HSAs is that unlike Flexible Spending Accounts (FSAs), which often come with expiration dates, your HSA funds remain intact and accessible without any deadlines. It’s a major advantage for planning your medical expenses.

Here’s a closer look at what becomes of your HSA money as the year ends:

• No Expiry: Your remaining HSA balance carries over into the new year without any penalties. This feature means that you can accumulate funds and use them when needed, rather than feeling pressured to spend them.
• Tax-Free Growth: Not only do your HSA funds remain available year after year, but they also have the potential to grow tax-free. Investing your contributions in various investment options can amplify your savings, making it easier to cover those unexpected medical costs.
• Portability: One of the best features of an HSA is its portability. Regardless of any job changes or alterations to your health insurance, the account retains your name and your funds are yours to utilize for qualified medical expenses now or in the future.

In summary, an HSA is a wise choice for healthcare savings that provides you with both flexibility and the opportunity for long-term growth while safeguarding your money from the risk of expiration.