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Home > Personal Banking > Health Savings Account > Spending Your HSA
  • Spending Your HSA

    Spending the money you’ve accumulated in your HSA is as simple as swiping your debit card or using online bill pay– but to take full advantage of the benefits, there are some things you should know.

    HSA funds are payable on demand. There are no restrictions on when or how you may take distributions. However, to fully recognize the tax advantages, funds must be used for qualified medical expenses.

    The IRS requires that an HSA be an individual account.  If you would like another person to have a debit card, you may name them as an authorized signer.

    What Happens To Unused HSA Funds?

    • No use it or lose it rules
    • All amounts in the HSA are fully vested
    • Unspent balances in accounts remain in the account until spent
    • Accounts can grow through investment earnings, just like an IRA 
    • Same investment options and investment limitations as IRA 
    • Same restrictions on self-dealing as with IRAs 

    What Happens When I Reach Age 65?

    As of age 65, funds can continue to be used for eligible medical expenses tax-free. You may also use the funds for non-eligible expenses and you are only subject to ordinary income tax without any IRS penalty.

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