What if I Don't Use My HSA Money in California?

Having a Health Savings Account (HSA) can be a great way to save for medical expenses while enjoying tax benefits. However, if you don't use your HSA money in California, you might be wondering what happens to those funds.

First, it’s important to note that unlike Flexible Spending Accounts (FSAs), HSA funds do not expire at the end of the year. This means that the money you contribute to your HSA will roll over year after year, allowing you to build a substantial savings for future healthcare needs.

If you don't use your HSA money in California, here are some things to consider:

• You can continue to let the funds grow tax-free in your HSA account.
• You can use the HSA funds for qualified medical expenses at any time, even if you no longer reside in California.
• If you withdraw the funds for non-qualified expenses before age 65, you will be subject to taxes and a penalty. However, after age 65, you can use the funds for any expenses penalty-free, although income tax may still apply.

Wondering what happens to your Health Savings Account (HSA) funds in California if you don’t use them? The great news is that your HSA money works for you even when it's sitting in the account, just waiting for future medical expenses.