Health Savings Account (HSA): Do I Lose It At the End of Each Year?

Health Savings Account (HSA): Do I Lose It At the End of Each Year?

The Health Savings Account (HSA) is an amazing tool to reduce healthcare expenses and insurance costs.  But do you lose it at the end of each year, like with a Flexible Savings Account (FSA)?

Thank goodness, no!  You do not lose your HSA money at the end of each year.

Health Savings Account were created specifically to be BETTER than their predecessors, Flexible Savings Accounts (FSA) and Medical Savings Accounts (MSA).

Your HSA does not have to be used up within the year.  In fact, the money can just build and build each year if you don't need it. It will be there for your health crisis if that ever happens.

If you never have that health crisis (and I hope that's the case for you!) then you will have a nice little nest egg built up of year-after-year of health savings plus the interest earned.

I really like the term "Health Savings Account."  I like it because it says that you can save by being healthy.  The healthier you are, the more money you'll have left in that account when you retire.

And speaking of retirement, your HSA will act like a nice Individual Retirement Account (IRA) as soon as you reach age 65. You'll be able to withdraw money without penalty for any reason you wish.  (But you'll still have to pay tax on withdrawal, just like with a traditional IRA).

My advice to you is put the maximum amount into your HSA every year.  The money will be there for you if you have a health crisis, and it will be there for you in retirement if you manage to stay healthy year-after-year.

Good luck with your healthcare, your health insurance and your HSA!

  » Discuss it   » Continue Reading »

» Submit a comment or contribute to this article

Read More Articles, They Are Related to This Topic:;

Health Insurance 101 For Individuals And Families
The changing healthcare and health insurance landscape in the United States has resulted in more individuals and families purchasing health insurance... Read more »

Consumer Driven Health Plans [ Cdhp ]
Do you know that skyrocketing health care costs have been draining the federal government and employer's exchequers over the last couple of years?... Read more »

Family Health Insurance Plans - How To Find The Best Provider Online
Family health insurance plans typically need to offer more coverage than plans for an individual. Regular check-ups and occasional emergencies need... Read more »

Online Health Insurance Quotes - Finding The Cheapest Rates Possible
Shopping for health insurance can be very discouraging when you become aware of the costs. If you are in search of affordable health insurance, an... Read more »

Private Health Insurance: A Sense Of Dissatisfaction
The three C's, customization, consumerization and customer-satisfaction, seem to be at the core of the business mantra for every service provider.... Read more »