What Happens When I Run Out of Money in an HSA?

Running out of money in your Health Savings Account (HSA) can be a concern, but it's essential to understand your options and how to handle this situation effectively.

When you run out of funds in your HSA, here's what you should know:

• No penalty: Unlike Flexible Spending Accounts (FSAs), there is no penalty for not spending all the funds in your HSA by the end of the year. The money rolls over, allowing you to accumulate savings over time.
• Still use for qualified expenses: Even if your account balance is low or depleted, you can still use your HSA for qualified medical expenses. This can include deductibles, co-pays, prescription medications, and certain medical procedures.
• Pay out of pocket: If you run out of funds and have a medical expense that isn't covered by insurance, you can pay out of pocket and reimburse yourself from your HSA later when you have sufficient funds.

It's important to keep track of your HSA balance and plan your expenses accordingly. Additionally, consider these tips to make the most of your HSA:

• Regularly contribute to your HSA to build up savings for future healthcare needs
• Review your investment options within your HSA for potential growth
• Utilize online tools and resources provided by your HSA provider to manage your account effectively

Running out of money in your Health Savings Account (HSA) can feel daunting, but knowing your options helps ease the worry.

Keep in mind, when your HSA balance runs low, there are several things you should consider:

• No expiration: Unlike FSAs, your HSA funds don’t vanish at year-end. Instead, they grow with you, providing peace of mind for future health expenses.
• Use for medical costs: Even with a low balance, you can apply your HSA for qualified medical expenses including co-pays and prescriptions.
• Out-of-pocket payments: If your HSA funds are depleted but medical bills arise, consider paying upfront and then reimbursing yourself when finances permit.

To get the most from your HSA, keep these strategies in mind:

• Contribute consistently to build a safety net for unexpected healthcare costs.
• Explore your investment options to maximize your savings potential.
• Utilize digital tools from your HSA provider to efficiently manage your funds.