Does HSA Roll Over Year to Year? - Understanding the Benefits of Health Savings Accounts

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses, but many people wonder - does HSA roll over year to year?

The simple answer is yes, HSA funds do roll over year to year.

Here are some key points to consider:

• HSAs are owned by the individual, which means the funds in the account belong to you and are not tied to your employer.
• Unlike Flexible Spending Accounts (FSAs), HSA funds do not expire at the end of the year.
• Any unused funds in your HSA at the end of the year will carry over to the following year, allowing you to continue growing your savings.
• There is no limit to how much money you can roll over in your HSA from year to year.

Rolling over HSA funds can offer significant benefits, including:

• Building a financial safety net for future healthcare expenses.
• Accumulating savings for retirement healthcare costs.
• Flexibility in using funds for qualified medical expenses.
• Tax advantages, as HSA contributions are tax-deductible and withdrawals for qualified expenses are tax-free.

By understanding the rollover feature of HSAs, you can make the most of this valuable savings tool and secure your financial health for the future.

Health Savings Accounts (HSAs) are increasingly recognized as essential for managing medical costs, and one of the most frequently asked questions is whether HSA funds roll over from one year to the next. The answer is definitely yes!