Who Gets HSA Balance if I Die? - Understanding HSA Beneficiary Rules

If you have a Health Savings Account (HSA) and you pass away, it's important to understand what happens to the balance in your HSA.

Here's a look at who may receive the remaining funds in your HSA:

• Spouse Beneficiary: If your spouse is the named beneficiary on your HSA, they can inherit the funds and use them for qualified medical expenses tax-free.
• Non-Spouse Beneficiary: If you designate a non-spouse beneficiary, such as a child or parent, the HSA will lose its tax-advantaged status upon your death, and the beneficiary will need to pay taxes on the funds.
• Estate Beneficiary: If no beneficiary is named, the HSA balance becomes part of your estate and will be distributed according to your will or state laws.

It's crucial to keep your beneficiary information updated to ensure the smooth transfer of HSA funds in case of your passing.

When you have a Health Savings Account (HSA) and you pass away, it's vital to know who will receive the remaining balance in your account as this can significantly impact their financial situation.