Can You Roll Over HSA Money to the Next Year?

If you have a Health Savings Account (HSA) and you're wondering whether you can roll over the money to the next year, the answer is yes! Unlike other types of flexible spending accounts, HSA funds roll over from year to year, making them a valuable long-term savings tool for your healthcare expenses.

There are several benefits to rolling over HSA money:

• Allows you to save for future medical expenses
• Provides a tax-advantaged way to grow your healthcare funds
• Ensures that your hard-earned money doesn't go to waste at the end of the year

However, there are some rules and limitations you should be aware of when it comes to rollovers:

• You must have an HSA-eligible high deductible health plan (HDHP) to contribute to an HSA
• There are annual contribution limits set by the IRS
• If you use HSA funds for non-qualified medical expenses, you may face penalties
• Rollover amounts do not count towards your annual contribution limit

It's important to understand the rules surrounding HSA rollovers to make the most of your healthcare savings account. By taking advantage of the rollover feature, you can build a significant nest egg for future medical needs.

If you’re holding HSA funds, it’s reassuring to know that you can roll over your HSA money into the following year without any fear of losing it. This feature is what sets Health Savings Accounts apart from flexible spending accounts, where you often risk leaving unspent money on the table at year-end. The ability to roll over helps you create a safety net for future medical costs.