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🏥 Healthcare

What Happens to Your FSA / HSA Card Account When You Die

CRITICALUse or lose fundsTax implications

Quick Facts

FSA

Use-it-or-lose-it — funds may expire

HSA

Funds transfer to beneficiary or estate

Action

Submit eligible expenses, claim remaining funds

Step-by-Step Guide

1

Identify account type and balance

Determine whether the account is an FSA (Flexible Spending Account) or HSA (Health Savings Account). Check the current balance — FSA funds may be forfeited if not used, while HSA funds transfer to a beneficiary.

Estimated time: 15 min

2

Submit eligible expenses

Submit claims for any eligible medical, dental, or vision expenses incurred before the date of death. For FSAs, submit receipts before the plan deadline to avoid forfeiting funds.

3

Claim HSA funds if applicable

For HSAs, contact the HSA administrator to transfer the account balance to the named beneficiary. If the beneficiary is a spouse, the HSA can transfer tax-free. Non-spouse beneficiaries will owe income tax on the balance.

4

Close the account

After all eligible expenses are submitted and funds are distributed, close the FSA or HSA account with the plan administrator.

Document Now Checklist

  • Account type (FSA or HSA)
  • Plan administrator name and contact
  • Current account balance
  • HSA beneficiary designation
  • Employer (if employer-sponsored)
  • Debit card number (if applicable)

Last verified: June 2026. Platform policies may change. Verify current procedures directly with FSA / HSA Card. This guide is for informational purposes only and does not constitute legal advice.

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