Can You Roll Over an FSA or HSA? - Understanding the Basics of Health Savings Accounts

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are popular tools to help individuals save money for medical expenses. But what happens if you switch jobs or have funds left over at the end of the year? Can you roll over an FSA or HSA?

When it comes to FSAs, the rules vary depending on your employer and plan. Some employers allow a rollover of up to $550 from one year to the next, while others have a grace period of two and a half months to use the leftover funds. However, most FSAs operate on a use-it-or-lose-it policy where any remaining balance is forfeited at the end of the plan year.

On the other hand, HSAs offer more flexibility when it comes to rollovers. Funds in an HSA never expire and can be rolled over year after year. This means you can continue to grow your HSA balance and use it for future medical expenses, even if you change jobs or health plans.

It is important to note that you cannot roll over funds from an FSA to an HSA or vice versa. Each account has its own rules and regulations that govern rollovers and contributions.

In summary, here are the key points to remember about rolling over an FSA or HSA:

• FSAs may allow a limited rollover or grace period, depending on the employer.
• HSAs offer unlimited rollovers and funds never expire.
• You cannot transfer funds between an FSA and an HSA.

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are popular tools designed to help you save money for medical expenses, but understanding how they work can be tricky. Many people wonder, especially when switching jobs or facing an end-of-year deadline, if they can roll over funds between these accounts.