Does My HSA Roll Over to Next Year?

Are you wondering whether your HSA (Health Savings Account) rolls over to the next year? Let's explore how HSAs work and whether the funds in your account carry over from one year to the next.

An HSA is a tax-advantaged savings account that allows individuals with a high-deductible health plan to save money for medical expenses. Unlike FSAs (Flexible Spending Accounts), the funds in an HSA belong to the account holder and do not expire at the end of the year.

Here's what you need to know about whether your HSA rolls over to the next year:

• HSAs are owned by the individual, meaning the funds in your account remain yours even if you change jobs or health plans.
• The money in your HSA rolls over from year to year with no expiration date, allowing you to save and accumulate funds for future medical expenses.
• You can invest the funds in your HSA to help them grow over time, providing you with a significant source of savings for healthcare costs during retirement.
• Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free, making it a valuable financial tool for healthcare planning.

By understanding how HSAs work and the benefits they offer, you can make informed decisions about saving for your healthcare needs now and in the future.