It depends on the carry-forward option you choose when the plan is set up: no carry forward, where unused credits are forfeited; a credit carry forward, where unused credits move to the next year; or an expense carry forward, where this year’s expenses can be claimed next year. Either kind of carry forward is limited to one year.
What happens if HSA funds are not used?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about health spending accounts
A tax-effective way for the business to pay for health and dental costs, for owners and employees.
More questions about health spending accounts
- What expenses can a health spending account (HSA) reimburse?
- How does a health spending account work for a business owner or employer?
- Who can be included in a health spending account plan?
- How is an HSA different from traditional group benefits or a lifestyle spending account?
- How do I choose an HSA provider?
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