What Happens to Unused HSA or FSA Funds?

If you have an HSA or FSA as part of your healthcare plan, we hope you’re putting those pre-tax dollars to good use. But what happens if you have some leftover at the end of the year? Will they roll over, or be lost to the void, never to be seen again?

Here’s the quick answer: Unused HSA funds roll over to the next year indefinitely; no “use it or lose it” here. Unused FSA funds, on the other hand, operate with “use it or lose it” and are typically returned to the employer once the plan year is up. 

Keep reading to dig a little deeper into the details of this common ask, along with some HSA/FSA-eligible goodies to use as inspiration (especially if you’re at risk of losing those valuable funds). 

What Happens to Unspent HSA Funds?

At the end of the plan year, your HSA funds will simply roll into the next year—no forfeit, expiration, or crippling regret to worry about. There’s no action required on your end, either; they’ll roll over automatically. 

This flexibility is an awesome perk, especially for those of us who tend to procrastinate (guilty). But there are still some benefits to using those funds now:

• Using HSA funds reduces your out-of-pocket costs for health-related purchases you’d have to make anyway. 
• Healthcare costs tend to increase over time; using your HSA funds now can help mitigate this. 
• Coverage can change from year to year (for example, while you’d still be able to use remaining funds, you may lose the ability to make new contributions).  

What Happens to Unused HSA Funds After You Leave a Job?

Eyeing a greener pasture, but don’t want to lose your HSA? Don’t worry: even if you switch jobs, your HSA account will remain yours. But while you don’t have to, you may want to roll it into a new HSA (either from your new employer or a new HSA provider) to avoid:

• Having to pay account fees (your employer might have been covering them before)
• Losing the ability to contribute to the HSA
• Having the HSA sent to the state as unclaimed property (this would only happen after a long stretch of inactivity)

What Happens to Unspent FSA Funds?

Sadly, FSAs aren’t as flexible as HSAs. They usually operate with the “use it or lose it rule”, meaning they’re returned to your employer at the end of the plan year. FSAs may also have a grace period, depending on your employer, giving you an extra 2.5 months (‘till March 15th) to use funds, or a rollover (AKA carryover), which allows you to carry unused funds into the next year.  

Especially if your plan doesn’t provide a grace period or rollover, you’ll need to use up those funds before the end of the year to avoid forfeiture. This might sound daunting, but you can easily shop eligible finds online using Stridekick’s HSA/FSA Shop, which is packed to the brim with bestselling health products ranging from groundbreaking tech to workout must-haves and daily essentials. 

Avoid Unused Funds with These HSA/FSA-Eligible Finds

Whether or not you need to use it before you lose it, your HSA or FSA is a great way to refocus on your health. We’re making it easy with our HSA/FSA Shop, packed with eligible goodies to ensure your benefits don’t go to waste. 

Warm-Weather Picks

Prepare to (safely) soak up more sun this summer with these HSA/FSA eligible favorites and avoid forgotten funds come winter:

• Soleil Toujours Face + Body High SPF Duo is a bundle of Soleil Toujours’ high-protection, reef-safe, water-resistant suncreens, ensuring you get comprehensive protection for beach days, park strolls, and pretty much anytime you go outside. 
• Proactiv Clear Skin SPF 30 Sunscreen is a lightweight, oil-free option for acne-prone skin, with a matte finish that hydrates as it protects.  
• Pair Polarized Tortoise Sun Top is a polarized lens top designed for use with Pair Eyewear’s magnetic sunglass system. Just snap them onto the base frame for stylish sunglasses that block 100% of UV rays. 

Health-ify Your Home

If you’re not sure what to spend your HSA or FSA on, consider giving your home a health-conscious makeover with these eligible picks:

• Levoit's LV-H132 Personal Air Purifier is the brand’s entry-level air purifier for rooms up to 129 square feet (think home office, bedroom, or nursery). It has a three-stage filtration system, including a pre-filter, True HEPA filter, and activated carbon to remove 99.97% of airborne particles.  
• Branch Standing Desk can transform your workday (and your health) by breaking up long periods of sitting. It features electric height adjustment with programmable memory presets, so you can seamlessly switch positions throughout the workday.   
• Branch Softside Chair is the sleek, ergonomic desk chair your back has been longing for. It’s designed to be more aesthetic than the average ergonomic chair, with performance fabric or bouclé upholstery and comfy cushioning to upgrade your home office setup. 

Self-Care Goodies

You (yes, you) deserve some self-care. Whether your idea of a self-care routine is a massage, a red light session, or a quiet sauna blanket moment, you can make it happen with finds from our Shop:

• The Hypervolt 3 Pro from Hyperice is the brand’s most powerful percussion massage gun, designed to provide deep-tissue relief. If intense workout sessions leave you sore, or if a past injury is dragging you down, this massage gun could provide the relief you need. 
• Omnilux’s Best Sellers Bundle is everything you need for a red light glow-up, complete with the Contour Face LED mask and a three-step skincare routine formulated to complement LED treatments. If you want to prioritize your skin, but don’t want to spend time at a med spa, this bundle is for you. 
• The Echelon Sauna Blanket helps detox your body using low-EMF, far-infrared heating technology, all in a compact blanket you can practically use and store on the regular. 

Didn’t find something that catches your eye? Don’t worry, this is just the beginning of what you’ll find in our HSA/FSA Shop. Head over there to start browsing—rest assured, we’ve partnered with Truemed to make your HSA/FSA purchases as seamless as possible. Let’s put those funds to good use!