Can You Carry Money Over From Year to Year in Your HSA Account?

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HSA rollover: funds carry into next year

One common question people have about Health Savings Accounts (HSAs) is whether they can carry money over from year to year in their account. The answer is yes! Unlike Flexible Spending Accounts (FSAs), which have a 'use-it-or-lose-it' rule, funds in an HSA roll over from year to year, allowing you to build up savings over time.

One of the most frequently asked questions about Health Savings Accounts (HSAs) is whether you are allowed to carry over money from one year to the next. The great news is that the answer is a resounding yes! Unlike Flexible Spending Accounts (FSAs) which typically enforce a 'use-it-or-lose-it' policy, with HSAs, any funds you do not spend in a given year simply roll over into the next.

Key rules about owning and using HSA funds

Here are some key points to keep in mind regarding carrying over money in your HSA:

• HSAs are owned by the account holder, so the funds belong to you, regardless of any job changes or insurance plan switches.
• There are no expiration dates on HSA funds, giving you the flexibility to use the money when you need it.
• Even if you switch to a different type of health insurance, your HSA funds remain available for qualified medical expenses.
• Carrying over money in your HSA allows you to save for future medical expenses, including deductibles, co-pays, and other out-of-pocket costs.

Why carrying over helps grow savings

By taking advantage of the ability to carry over money in your HSA, you can steadily grow your savings and have peace of mind knowing that you have funds available for healthcare costs.