Can HSA Savings be Carried Over?

Health Savings Accounts (HSAs) are a valuable tool for individuals to save and pay for medical expenses while enjoying tax advantages. One common question that arises when considering an HSA is whether the savings can be carried over from year to year.

The good news is, yes, HSA savings can be carried over from year to year. Unlike Flexible Spending Accounts (FSAs) where unused funds may be forfeited at the end of the year, HSAs do not have a 'use it or lose it' rule.

Here are some key points to consider:

• HSA savings roll over indefinitely
• There is no expiration date for using HSA funds
• The money in your HSA belongs to you, even if you change jobs or health plans

It's important to note that in order to contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP). Additionally, there are annual contribution limits set by the IRS.

By taking advantage of an HSA, you can save for current and future medical expenses, build a nest egg for retirement healthcare costs, and enjoy tax savings along the way.

Health Savings Accounts (HSAs) provide a flexible way for individuals to save for healthcare costs, and one of their greatest advantages is that savings can carry over from year to year indefinitely.