Does Your HSA Roll Over? Understanding the Rollover Feature of Health Savings Accounts

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while enjoying tax benefits. One common question many people have about HSAs is whether the funds in their account rollover from year to year.

The answer is yes, HSAs do roll over! Unlike Flexible Spending Accounts (FSAs), which have a 'use-it-or-lose-it' rule, the money you contribute to your HSA remains in your account indefinitely.

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

• Any funds left in your HSA at the end of the year automatically roll over to the next year.
• There is no limit to the amount of money that can rollover in your HSA.
• These rollover funds continue to grow tax-free, allowing you to build a substantial savings for future healthcare expenses.
• Even if you change jobs or health insurance plans, your HSA funds are still yours to keep and use for eligible expenses.

It's important to note that while HSA funds can roll over year after year, you must be enrolled in a high deductible health plan (HDHP) to qualify for an HSA.

By taking advantage of the rollover feature of HSAs, you can effectively save for both current and future healthcare costs, providing you with financial security and peace of mind.

Health Savings Accounts (HSAs) are not just a great way to save on healthcare costs, they also come with the advantage of rollover feature. Many people wonder if their hard-earned contributions can be carried over, and the good news is, they absolutely can!