When Do You Lose Your HSA? - HSA Awareness Article

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Key ways HSAs benefits can be lost

Health Savings Accounts (HSAs) are a valuable tool for covering medical expenses and saving for the future. However, there are circumstances in which you can lose your HSA:

1. Change in Eligibility: If you are no longer eligible to contribute to an HSA, you may lose access to it. 2. Using Funds Incorrectly: If you withdraw HSA funds for non-qualified medical expenses, you may face penalties and lose the tax advantages. 3. Death: In the event of your passing, your HSA funds may be transferred to your beneficiary, but there are rules to follow. 4. Turning 65: Once you turn 65 and enroll in Medicare, you can no longer contribute to your HSA.

It's important to understand the rules and regulations surrounding HSAs to ensure you don't lose this valuable resource.

Health Savings Accounts (HSAs) provide an incredible opportunity to manage your healthcare expenses and save for future medical needs, but be cautious—there are moments when you might risk losing your HSA benefits.