Do All HSA Plans Carry Over Year to Year?

Health Savings Accounts (HSAs) have become a popular option for individuals looking to save for healthcare expenses while enjoying tax benefits. One common question that arises is whether all HSA plans carry over year to year.

HSAs are unique in that they are owned by the individual, meaning the funds in the account belong to the account holder, not the employer. This ownership structure also allows for certain benefits regarding rollover from year to year.

While many HSA plans do allow for funds to carry over from one year to the next, it is essential to check the specific terms of your HSA plan to ensure you understand the rollover provisions. Here are some key points to consider:

• Most HSA plans offer carryover of funds from year to year without any expiration.
• Some HSA plans may have a limit on the maximum amount that can be carried over, so it's crucial to be aware of any caps.
• Unused funds in your HSA can continue to grow tax-free, providing a valuable long-term savings opportunity for healthcare expenses in retirement.

It is important to note that while most HSA plans allow for funds to carry over, Flexible Spending Accounts (FSAs) have different rules regarding rollover. FSAs typically have a

When considering a Health Savings Account (HSA), it’s important to understand that most plans allow your funds to roll over year after year, making it a smart way to save for future healthcare expenses.