Does Money Roll Over in HSA? All You Need to Know

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses, but many people are unsure about how they work. One common question that arises is whether money rolls over in an HSA.

The short answer is yes, money in an HSA rolls over from year to year. Unlike Flexible Spending Accounts (FSAs), where funds are subject to a 'use it or lose it' rule, HSA funds are yours to keep and continue to grow over time.

Here are some key points to keep in mind:

• Contributions to an HSA are tax-deductible, and any interest or investment earnings grow tax-free.
• HSA funds can be used to pay for qualified medical expenses both now and in the future, including in retirement.
• Unused HSA funds remain in the account and can be carried over indefinitely without penalty.
• If you change jobs or health insurance plans, your HSA is portable, meaning you can take it with you and continue to use the funds for medical expenses.
• It's important to note that there are annual contribution limits set by the IRS, so be sure to stay within these limits to avoid any potential tax implications.

In conclusion, HSA funds do roll over, making them a smart way to save for healthcare costs both now and in the future. By taking advantage of the tax benefits and flexibility of an HSA, you can better prepare for unexpected medical expenses and build a financial safety net for the long term.

Health Savings Accounts (HSAs) are more than just a way to save money; they offer a unique opportunity to invest in your health. One significant benefit is that your HSA funds accumulate each year and do not expire. This means you can strategically plan your healthcare spending over time.