Does an HSA Roll Over? Understanding the Rollover Option in Health Savings Account

Health Savings Account (HSA) is a valuable tool for individuals to save and pay for eligible medical expenses with tax-free funds. One common question that arises about HSAs is whether the funds in the account rollover from year to year.

Yes, an HSA does roll over, and it offers a unique benefit compared to other types of accounts. Here's how the rollover works:

• Unlike Flexible Spending Accounts (FSAs), the funds in an HSA do not have a 'use-it-or-lose-it' rule.
• The money you contribute to an HSA stays in the account indefinitely and continues to grow tax-free.
• There is no requirement to spend all the money in your HSA by the end of the year.

Additionally, here are some important points to know about HSA rollovers:

• Any unused funds in the HSA at the end of the year stays in the account and carries over to the next year.
• There is no limit or expiration date on how long the funds can stay in the HSA and accumulate over time.
• You can invest the funds in your HSA for potential growth, allowing you to build a substantial healthcare savings nest egg.

Understanding the rollover feature of an HSA can help you make the most of this financial tool and plan for future healthcare expenses.

One of the standout features of Health Savings Accounts (HSAs) is the ability to roll over funds from one year to the next, providing flexibility and security that many other accounts, like Flexible Spending Accounts (FSAs), do not offer.