Unlike FSAs, your Health Savings Account (HSA) funds roll over—so there’s no rush to spend. But the end of the year is still a great time to review your contributions, plan reimbursements, and set yourself up for stronger savings in 2026.
Why Your HSA Deserves Year-End Attention
HSAs offer a triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. That makes them one of the most powerful tools for both short-term health costs and long-term financial planning.
Year-End HSA Checklist
• Max out your contributions: For 2025, the limits are $4,150 for individuals and $8,300 for families. If you’re 55 or older, you can add a $1,000 catch-up contribution.
• Review your expenses: You can reimburse yourself for qualified medical costs—even if you paid out-of-pocket months ago. There’s no time limit on reimbursements, so keep good records.
• Invest your balance: Many HSA holders forget they can invest their funds. If you haven’t started, consider allocating part of your balance to low-cost index funds or other long-term vehicles.
• Plan for next year: If you’re switching health plans, make sure you’ll still be eligible for HSA contributions. Only high-deductible health plans (HDHPs) qualify.
Tip:
Don’t confuse your HSA with an FSA. FSAs often expire at year-end, but your HSA funds stay with you—and can grow for decades.
Bottom line: Your HSA is more than a spending account—it’s a savings powerhouse. A few smart moves now can boost your tax savings and build a cushion for future healthcare costs.
