What Happens to Money I Don't Use in my HSA?

Have you ever wondered what happens to the money you don't use in your HSA?

A Health Savings Account (HSA) is a great way to save for medical expenses, but sometimes you may end up with some leftover funds at the end of the year. So, what happens to that money?

If you have money left in your HSA at the end of the year, here's what you need to know:

• The money in your HSA rolls over year after year. Unlike a Flexible Spending Account (FSA) where funds may expire at the end of the year, the funds in your HSA stay in your account until you use them.
• You can use the money in your HSA at any time for qualified medical expenses, even if you no longer have an HDHP (High Deductible Health Plan).
• If you're 65 or older, you can use the money in your HSA for non-medical expenses without penalty, although taxes will apply.
• You can invest the money in your HSA for potential growth, allowing you to save even more for future healthcare costs.

So, rest assured that the money you don't use in your HSA doesn't disappear. It stays in your account, ready for you to use when you need it.

Have you ever stopped to think about what happens to the money you leave untouched in your Health Savings Account (HSA)?

A Health Savings Account is an excellent tool to set aside funds for medical expenses, and if you find yourself with extra money as the year closes, you're in good shape! But what exactly happens to that leftover cash?

Fortunately, if you don’t spend all your HSA money, here are some key points:

• Your HSA funds roll over annually, which means they won't disappear at the end of the year like they might with a Flexible Spending Account (FSA). Instead, they remain in your account, waiting for future use.
• You can utilize the money in your HSA at any time for qualified medical expenses—this is true even if you've moved away from having a High Deductible Health Plan (HDHP).
• If you’re 65 years or older, the funds in your HSA can be put towards non-medical expenses without incurring a penalty, though keep in mind that taxes will apply to those funds.
• Moreover, many HSAs offer investment options, providing you opportunities for your money to grow over time, which can bolster your savings for future healthcare costs.

So, don’t worry about that unspent money in your HSA—it’s not going anywhere! It’s there, accumulating, ready for you to tap into when you need it most.