What Happens When My HSA Funds Run Out?

Many individuals use a Health Savings Account, or HSA, to save money for medical expenses. However, the question arises - what happens when your HSA funds run out?

When your HSA funds are depleted, you can no longer use the account to pay for medical expenses tax-free. Here's what happens when your HSA funds run out:

• You will need to pay for medical expenses out of pocket, using after-tax dollars.
• If you use the funds for non-qualified medical expenses, you will be subject to taxes and penalties.
• There are some options available to help cover medical costs when your HSA funds run out:
• Utilize a payment plan with your healthcare provider.
• Consider using a Flexible Spending Account (FSA) if available.
• Explore other financing options such as personal loans or credit cards.

Many individuals turn to a Health Savings Account (HSA) as a reliable method for saving money on medical expenses. But what happens when those funds are no longer available? It's a question that can leave many feeling anxious.

When your HSA balance is depleted, it can create financial challenges. Here's what you need to know:

• Your out-of-pocket expenses will have to be covered using your post-tax earnings.
• If you mistakenly use the remaining funds for expenses that are not HSA-qualified, be prepared for possible taxes and penalties.
• Fortunately, there are several strategies you can implement to manage those medical costs:
• Talk with your healthcare provider about setting up a flexible payment plan.
• If you're lucky enough to have one, a Flexible Spending Account (FSA) can come to the rescue.
• You might also look into personal loans or even credit cards as a temporary solution.