Do HSA Accounts Roll Over Each Year? A Comprehensive Guide

Health Savings Accounts, commonly known as HSAs, have become increasingly popular as a way to save for medical expenses while enjoying tax advantages. One common question that many people have is: do HSA accounts roll over each year?

The short answer is yes, HSA accounts do roll over each year. Unlike Flexible Spending Accounts (FSAs), the funds in your HSA do not expire at the end of the year. This rollover feature is one of the key benefits of an HSA and can help you build a significant nest egg for future healthcare expenses.

Here are some key points to consider regarding HSA rollovers:

• Contributions made to your HSA are not use-it-or-lose-it and can rollover from year to year
• The funds in your HSA belong to you, even if you change jobs or healthcare plans
• You can continue to contribute to your HSA year after year, allowing your savings to grow over time
• HSA funds can be invested, allowing for potential growth through investment returns
• Rolling over HSA funds can help you prepare for future medical expenses, including retirement healthcare costs

Overall, the ability of HSA accounts to roll over each year provides a valuable opportunity for individuals to save and invest in their healthcare needs over the long term.

Health Savings Accounts (HSAs) are an increasingly attractive option for those looking to save on medical expenses while benefiting from tax advantages. It's essential to understand that HSA accounts do indeed roll over each year, providing you with a valuable financial cushion.