Can You Carry Over HSA Money? - Understanding Health Savings Accounts

Health Savings Accounts (HSAs) are a popular way for individuals to save and pay for medical expenses tax-free. One common question that many HSA account holders have is: can you carry over HSA money?

The good news is that yes, you can carry over HSA money from year to year. Unlike Flexible Spending Accounts (FSAs), which have a 'use-it-or-lose-it' rule, funds in an HSA do not expire at the end of the year. This feature makes HSAs a great long-term savings tool for healthcare expenses.

There are a few key points to keep in mind regarding carrying over HSA funds:

• HSAs are linked to high-deductible health plans (HDHPs), so you must have an HDHP to be eligible to contribute to an HSA.
• The annual contribution limits for HSAs are set by the IRS and may change from year to year. For 2021, the limit for individuals is $3,600 and for families is $7,200.
• Any funds left in your HSA at the end of the year will automatically roll over to the next year, allowing you to continue building your savings for future healthcare costs.
• You can use HSA funds to pay for a wide range of eligible medical expenses, including doctor's visits, prescription medications, dental care, and vision expenses.

By understanding the rules and benefits of HSAs, you can make the most of this valuable savings tool and take control of your healthcare expenses.

Health Savings Accounts (HSAs) are a fantastic option for individuals looking to save money for future healthcare expenses, and the ability to carry over HSA money is just one of their many advantages.