Can I Lose My HSA Money? Is There A Date I Must Use HSA Money By?

You own the money in your HSA and it does not expire.  Should you change jobs or health care coverage during the year you will not lose the money in your Health Savings Account. The money you contribute is your money until you spend it, for the rest of your life.

Your Health Savings Account is portable and non-forfeitable. The money in your account may earn tax-free interest, and any money you don't spend continues to grow tax free until you use it. When you take money out of your Health Savings Account, you will not be taxed as long as you are paying for eligible expenses.

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     If I want to withdraw the remaining funds from my account, how do I go about that?  What are the penalties associated with doing that? 


    William Arnold

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    Kristen Van Bomel

    Hi William,

    You can always continue to use your HSA funds for eligible medical expenses, even after you have left your employer, or changed plans. Those withdrawals will always be tax-free.

    If you take withdrawals from your HSA (including a withdrawal or your entire balance), and you do not use that money for eligible medical expenses, then you'll need to report the amount on your tax return, and you will be responsible for paying income taxes on the amount, plus a 20% penalty.