Can HSA Balances Be Rolled Over? All You Need to Know

Health Savings Accounts (HSAs) have become increasingly popular as a way for individuals to save for medical expenses while also enjoying tax benefits. One common question that often comes up is whether HSA balances can be rolled over from year to year.

The good news is that yes, HSA balances can be rolled over. Unlike Flexible Spending Accounts (FSAs), which have a 'use it or lose it' rule, HSAs are not subject to the same restrictions. Here's what you need to know about rolling over HSA balances:

• HSAs are owned by the individual, not the employer, so the funds belong to you and stay with you even if you change jobs or health plans.
• There is no deadline for using the funds in your HSA, so you can let the money grow over time and use it for qualified medical expenses whenever you need to.
• Rolling over HSA balances from year to year allows you to build a nest egg for future medical expenses, including retirement health care costs.
• It's important to keep track of your HSA contributions and withdrawals to ensure that you are using the funds for eligible expenses and avoid any potential tax penalties.

In summary, HSA balances can be rolled over, providing a flexible and tax-efficient way to save for medical costs both now and in the future.

Health Savings Accounts (HSAs) are invaluable for anyone looking to save effectively for medical expenses. One of the most reassuring features of an HSA is that your HSA balances can indeed roll over year after year. This flexibility sets HSAs apart from other savings plans like Flexible Spending Accounts (FSAs), which often have a 'use it or lose it' policy.