Can HSA Balance Carry Forward to the Following Year?

One common question many individuals have about Health Savings Accounts (HSAs) is whether the balance can carry forward to the following year. The simple answer is, yes, the balance in an HSA account can indeed carry forward from year to year!

HSAs are unique in that they are owned by the account holder and not tied to any specific insurance plan. This allows for the balance to roll over each year, unlike Flexible Spending Accounts (FSAs) which have a 'use-it-or-lose-it' rule.

Here are some key points to remember about HSA balance rollovers:

• Unlike FSAs, HSA funds do not expire at the end of the year.
• The balance in your HSA account earns interest and grows tax-free.
• You can use the accumulated funds for qualified medical expenses at any time, even in future years.

Having the ability for your HSA balance to carry forward is a great advantage as it allows you to save and build up funds for future healthcare needs. This flexibility and long-term savings potential make HSAs a valuable tool for managing healthcare costs.

Have you ever wondered if your Health Savings Account (HSA) balance can be carried into the next year? The answer is a resounding yes! The balance in your HSA can roll over indefinitely, allowing you to save effectively for future healthcare needs.