Can You Carry Over Your Funds from HSA the Following Year?

One of the common questions that people have about Health Savings Accounts (HSAs) is whether they can carry over their funds from one year to the next. The good news is that with HSAs, any money you contribute to the account does not expire at the end of the year, unlike Flexible Spending Accounts (FSAs).

When it comes to HSA funds, you have the benefit of year-over-year growth without losing the unused funds at the end of the year. This feature makes HSAs a great way to save for future medical expenses and retirement healthcare costs.

Here are some key points to keep in mind regarding carrying over funds in an HSA:

• Unlike FSAs, HSA funds roll over from year to year
• There is no time limit on using the funds in your HSA
• You can invest the funds in your HSA for potential growth
• Any unused funds remain in your account and are not forfeited

Having the ability to carry over funds from one year to the next in an HSA provides flexibility and peace of mind, knowing that your savings will always be available when you need them for qualified medical expenses.

One of the most frequently asked questions about Health Savings Accounts (HSAs) is whether you can carry over your funds to the following year. The wonderful truth is, unlike Flexible Spending Accounts (FSAs), any money you contribute to your HSA will carry over indefinitely, ensuring you don’t lose your hard-earned savings at year-end.