Common HSA Questions

Who owns the money in my HSA? Does the money in the HSA expire? Are HSAs use it or lose it?

You own the money in your HSA. Once you or your employer puts money in your HSA it will stay there indefinitely until you use it, just like a regular savings account. There are no “use it or lose it” rules regarding HSAs.

How can you make deposits to your account besides payroll contributions?

You can transfer money from other accounts or deposit it into your account. It is important to keep in mind that you will not avoid all taxes, such as payroll taxes, if you do this. If you have an established HSA with another bank, you can transfer or rollover the funds between accounts without paying taxes.

What if I’m no longer eligible for an HSA?

When you are no longer eligible for an HSA you may not make contributions to it without incurring a penalty. Otherwise, everything is the same.

The account remains open and you can still use the money for eligible medical expenses without any penalties. When you become eligible for an HSA again in the future, you can continue making contributions.

You should check your eligibility before making contributions to your HSA. Also, contributions limits are pro-rated when you are eligible for only part of the year. The IRS Instructions for Form 8889 will help you determine your contribution limits.

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