Do HSA Funds Rollover Year to Year? A Guide to Understanding HSA Rollover

One common question that individuals often have regarding Health Savings Accounts (HSAs) is whether the funds rollover from year to year. The short answer is yes, HSA funds do rollover year to year, making them a valuable long-term savings tool for healthcare expenses. Here is a comprehensive guide to understanding HSA rollover:

When you contribute to an HSA, the funds in the account are yours to keep, even if you change jobs or switch health insurance plans. This means that the money you contribute to your HSA is not subject to a 'use it or lose it' rule like with Flexible Spending Accounts (FSAs). You can accumulate funds in your HSA over time and use them for eligible medical expenses both now and in the future.

Key points to remember about HSA rollover:

• HSA funds rollover from year to year with no expiration date.
• You can invest your HSA funds for potential growth over time.
• Unused HSA funds can be carried forward indefinitely and used for qualified medical expenses.
• Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
• Once you turn 65, you can use the funds in your HSA for non-medical expenses without penalty (though regular income tax still applies).

Absolutely! One of the great features of Health Savings Accounts (HSAs) is that the funds you contribute roll over year after year, allowing you to build a solid financial cushion for your future healthcare costs.