When Do HSA Funds Expire? Understanding the Expiry of Health Savings Account Funds

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. However, many HSA account holders wonder: when do HSA funds expire?

Unlike Flexible Spending Accounts (FSAs), HSA funds do not expire at the end of the year. The money you contribute to your HSA account rolls over from year to year, allowing you to accumulate savings over time.

Here are some important points to note about the expiration of HSA funds:

• HSA funds never expire as long as the account remains active and in good standing.
• Even if you change jobs or health insurance plans, your HSA funds remain with you, ready to be used for qualified medical expenses.
• It's essential to keep track of your HSA balance and expenses to ensure you are using the funds wisely and in accordance with IRS regulations.
• HSAs offer a triple tax advantage - contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free.

Understanding the longevity of HSA funds can help you make informed decisions about saving for healthcare costs and maximizing the benefits of your account.

Health Savings Accounts (HSAs) offer a unique and effective way to save for current and future medical expenses while providing generous tax advantages. Notably, one key feature of HSAs is that unlike Flexible Spending Accounts (FSAs), the funds in your HSA do not expire at the end of the plan year.