What Happens to My HSA $ at the End of the Year?

As the end of the year approaches, many HSA account holders may wonder what will happen to the funds in their account. HSA, or Health Savings Account, is a tax-advantaged savings account for medical expenses. If you have an HSA, here's what you need to know about what happens to your HSA dollars at the end of the year:

At the end of the year, the funds in your HSA account rollover automatically. Unlike FSAs, which have a 'use it or lose it' rule, HSA funds are not forfeited at the end of the year. This means that any unused funds in your HSA account will carry over to the next year, allowing you to continue using them for eligible medical expenses.

Here are a few key points to keep in mind regarding your HSA funds at the end of the year:

• Any unused funds in your HSA account will rollover to the next year
• HSA funds are not subject to expiration or forfeiture
• You can continue to use your HSA dollars for qualified medical expenses in the future

It's important to note that HSA funds are meant to be used for qualified medical expenses only. If you withdraw funds for non-qualified expenses, you may be subject to taxes and penalties. By understanding what happens to your HSA dollars at the end of the year, you can effectively plan and manage your healthcare expenses.

As we bid farewell to another year, it’s natural for HSA account holders to ponder the fate of their funds in the Health Savings Account. Rest assured, your money is not at risk of disappearing like it would in a Flexible Spending Account (FSA). Instead, it carries over automatically into the new year, ready for you to utilize it for covered medical expenses. This feature allows you to manage your healthcare needs effectively over time.