HSA US fed

[Cowspot28]

I know that many people use HSAs as a way to reduce their AGI. I work for the US government and took advantage of the plan this year due to expected high healthcare demands (birth of son). I paid $2500 for a home birth and was able to count that towards my HSA max of $2550. My understanding of the benefit is that if you don't use the money within a certain timeframe (calender year), you lose it. I don't have high healthcare costs typically due to good and free insurance through husband's work. Why is it advantageous to contribute money into this plan if you have low/no healthcare costs?

[terran]

I think you need to look into whether you have an HSA or an FSA. An HSA can roll over indefinitely (and requires a high deductible healthcare plan to be eligible), and FSA needs to (mostly) be spent within a year.