Can You Rollover HSA to Next Year? Understanding the Benefits of HSA Rollovers

One of the common questions that individuals ask about their Health Savings Account (HSA) is whether they can rollover their HSA balance to the next year. The good news is that HSA funds do not expire at the end of the year like some other types of accounts. Here's what you need to know about rollovers and the benefits of carrying over your HSA balance:

Benefits of Rolling Over Your HSA:

• Unused funds in your HSA roll over from year to year
• Offers potential for long-term savings and growth
• Allows you to use the funds for future medical expenses
• Flexibility in managing your healthcare costs

Now, let's address the question: Can you rollover HSA to the next year?

Yes, you can rollover your HSA balance to the next year. Unlike other accounts like FSAs (Flexible Spending Accounts), HSA balances do not have a 'use-it-or-lose-it' rule. This means any funds left in your HSA at the end of the year are automatically rolled over to the following year, providing you with greater flexibility and control over your healthcare expenses.

It's important to note that while you can rollover your HSA balance each year, there are limits on the amount you can contribute annually based on IRS regulations. As of 2021, the contribution limit for individuals is $3,600 and $7,200 for families.

A frequent inquiry regarding Health Savings Accounts (HSAs) is about the possibility of rolling over funds to the following year. The great news is that your HSA balance does not perish at year's end, allowing you to build your savings over time.