Will I Keep My HSA? - Understanding the Basics of Health Savings Accounts

There may come a time when you wonder, 'Will I keep my HSA?' Understanding the basics of Health Savings Accounts (HSAs) can help you navigate this financial decision effortlessly.

HSAs are designed to help individuals save for qualified medical expenses tax-free. They offer a triple tax advantage, allowing contributions to grow tax-free, withdrawals for qualified medical expenses tax-free, and tax deductions on contributions. However, certain factors may influence whether you can keep your HSA:

• If you switch to a non-HDHP (High Deductible Health Plan), you cannot contribute to your HSA but can still use the existing funds for medical expenses.
• If you no longer have an HDHP, you may still keep your HSA and make withdrawals for medical expenses.
• Upon turning 65 or enrolling in Medicare, you can still keep your HSA, but there are restrictions on how you can use the funds.
• Unused HSA funds roll over each year, and there is no time limit on when you must use them.

Keeping your HSA is possible in various scenarios, offering flexibility and financial security during unexpected medical expenses.

When you ponder, 'Will I keep my HSA?', it’s important to explore the various ways Health Savings Accounts (HSAs) can benefit you as life changes unfold.