Do HSA Funds Roll Over to the Next Year?

One common question among HSA account holders is whether the funds in their Health Savings Account will roll over to the next year. The short answer is yes, HSA funds do roll over from year to year, which is one of the many advantages of having an HSA.

Here are some key points to help you understand how HSA funds rollover:

• Unlike Flexible Spending Accounts (FSAs), HSA funds have no expiration date. This means that the money you contribute to your HSA account remains in the account until you decide to use it.
• There is no 'use it or lose it' rule with HSAs, which gives account holders flexibility in planning and using their healthcare funds.
• Any unused funds in your HSA at the end of the year will automatically carry over to the following year. This feature allows you to save and accumulate funds for future healthcare expenses.
• Rolling over HSA funds can help you build a significant balance over time, which can be especially beneficial for retirement healthcare costs.
• Additionally, the rollover feature of HSA funds is portable, meaning you can keep your HSA funds even if you change employers or health insurance plans.

In conclusion, knowing that HSA funds roll over from year to year can give you peace of mind in managing your healthcare expenses and saving for future medical needs.

The question of whether HSA funds roll over is one that many account holders ponder, and the good news is that HSA funds do indeed carry over from one year to the next, offering you the reassurance that your contributions won't go to waste.