How Much Can You Carry Over in an HSA?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while also taking advantage of tax benefits. One common question people have about HSAs is how much they can carry over from year to year. Let's explore the details.

Each year, the IRS sets a maximum contribution limit for HSAs. In 2021, the limit for individuals is $3,600 and for families is $7,200. These contributions can roll over from year to year, unlike Flexible Spending Accounts (FSAs) which have a 'use it or lose it' rule.

One of the key benefits of an HSA is that the funds are yours to keep, even if you change jobs or health insurance plans. This portability allows you to build up a significant balance over time to cover future medical expenses.

Health Savings Accounts (HSAs) provide you with an excellent opportunity not only to save money for medical expenses but also to gain tax advantages that can significantly boost your savings. When it comes to carrying over funds, it’s crucial to know that you can roll over your entire balance from year to year without any limits, unlike Flexible Spending Accounts (FSAs) that can leave you scrambling to spend your money.