Does an HSA Plan Carry Over Year to Year?

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HSAs do funds carry over annually

One of the common questions individuals have about Health Savings Accounts (HSAs) is whether the funds in the account carry over from year to year.

Yes, an HSA plan does carry over from year to year. Unlike Flexible Spending Accounts (FSAs), the money you contribute to your HSA belongs to you and does not expire at the end of the year.

Key rollover rules and long-term use

Here are some key points to know about HSA rollovers:

• Contributions made to an HSA can be rolled over year after year
• There is no 'use it or lose it' rule with HSAs
• The funds in an HSA belong to the account holder and can continue to grow over time
• You can use the money in your HSA for qualified medical expenses at any time, now or in the future
• You can carry over your HSA balance into retirement and use it to cover healthcare expenses

Having the ability to carry over your HSA balance year to year provides flexibility and a long-term savings opportunity for healthcare costs.

Many individuals wonder about the long-term benefits of their Health Savings Accounts (HSAs), particularly regarding whether the funds can carry over from year to year. The good news is that HSAs do indeed allow for funds to roll over annually.