HSAs are an annoying attempt to fix US health insurance. They are tax free (meaning your money goes farther), but you can only contribute to them if you have a high deductible health insurance plan.
Additionally, you are limited to a couple thousand a year in contributions and that money can only be used for approved health expenses. The slight upside is that the money won’t ever go away, meaning you can keep building up your HSA and even invest it.
Where it’s gotten weird is that many people actually just use it as tax deffered savings, as after 65 (I think) the money becomes general use.
However, this means HSAs primarily benefit wealthier people by only really being accessible to those who already have insurance and have excess money to contribute.
jackal@infosec.pub 1 month ago
Well, I spent the money using the American healthcare system. Because my insurance sucks so much that I often get shafted with huge bills. One such recent one was learning I had to get hearing aids out of pocket as my plan had no coverage. That is why my HSA is gone.
AA5B@lemmy.world 1 month ago
That’s unfortunate: it definitely sucks both that hearing aids are inordinately expensive and that they’re not usually covered. I assumed from reading your post that it was more intentionally spending down and abandoning the account