Does My HSA Money Roll Over? Understanding HSA Rollover Rules

One common question many people have about their Health Savings Account (HSA) is whether or not the money in their account rolls over from year to year. The short answer is: yes, your HSA money does roll over!

Unlike a Flexible Spending Account (FSA), where funds typically don't roll over, the funds in your HSA belong to you and will continue to accumulate year after year. This is one of the many benefits of having an HSA.

Here are some key points to keep in mind regarding HSA rollovers:

• Your HSA funds never expire, so you don't have to worry about losing the money in your account at the end of the year.
• There is no use-it-or-lose-it rule with an HSA, allowing you to save and invest your funds for future healthcare expenses.
• Even if you change jobs or switch healthcare plans, your HSA funds remain with you.

It's important to understand that while your HSA funds roll over, there are contribution limits set by the IRS each year. For 2021, the contribution limit for individuals is $3,600 and $7,200 for families.

By taking advantage of the rollover feature of your HSA, you can save for healthcare expenses not only in the current year but also for the future. It's like a personal healthcare savings account that grows over time!

Many people wonder if their Health Savings Account (HSA) money rolls over from year to year. The good news is: absolutely, your HSA funds do roll over!

While Flexible Spending Accounts (FSAs) typically have a use-it-or-lose-it policy, HSAs allow your funds to roll over and continue growing year after year. This is one of the standout benefits that make HSAs so appealing.

Here are some significant points to remember about HSA rollovers:

• Your HSA funds are never subject to expiration, meaning you won’t lose your balance at year’s end.
• No use-it-or-lose-it regulations apply here, giving you the flexibility to save for future healthcare costs.
• Even if you decide to change jobs or health plans, rest assured that your HSA funds remain securely with you.

However, do keep in mind that the IRS sets annual contribution limits for HSAs. For 2021, you could contribute up to $3,600 as an individual and $7,200 for a family.

By utilizing the rollover feature of your HSA effectively, you can create a substantial nest egg for your future healthcare expenses, making it an excellent long-term savings tool!