Can I Still Use Last Year's HSA Money? - Understanding HSA Rollover Rules and Benefits

One common question that HSA (Health Savings Account) holders often have is whether they can still use last year's HSA money. The answer to this question lies in understanding the rules and benefits of HSA rollovers. Let's delve into this topic to provide clarity on how you can make the most of your HSA funds.

HSAs are designed to help individuals save and pay for qualified medical expenses tax-free. They offer a range of benefits, including:

• Tax advantages
• Flexible contributions
• Portability
• Investment options

When it comes to using last year's HSA money, here are some key points to keep in mind:

• Unlike FSAs (Flexible Spending Accounts), HSAs have rollover capabilities, meaning you can carry over unused funds from one year to the next.
• There is no deadline for using your HSA funds, as they roll over indefinitely without penalty.
• You can use your HSA funds to pay for qualified medical expenses not only from the current year but also from previous years.
• It's important to keep track of your expenses and receipts to ensure proper documentation for tax purposes.

By leveraging the rollover feature of HSAs, you can effectively build a healthcare nest egg for future needs. Whether you have ongoing medical costs or want to save for retirement healthcare expenses, your HSA funds can provide valuable support.

So, the bottom line is yes, you can still use last year's HSA money as long as it remains in your account. Take advantage of this benefit to safeguard your health and financial well-being.

Absolutely! One of the greatest advantages of having a Health Savings Account (HSA) is the ability to carry over unused funds from year to year, ensuring that you're never left without crucial financial support for your healthcare expenses.