How Much Money Rolls Over in an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question people have about HSAs is how much money can roll over each year. So, let's dive into this important aspect of HSAs.

Every year, the money in your HSA rolls over completely; there is no limit to the amount that can roll over from one year to the next. This is one of the key advantages of an HSA as it allows you to build up savings for future medical expenses.

Here are some key points to remember about how money rolls over in an HSA:

• There is no limit to the amount of money that can roll over each year in an HSA.
• You can continue to grow your HSA balance year after year without losing any funds.
• The funds in your HSA stay with you even if you change jobs or health insurance plans.

It's important to note that while there is no limit to how much money can roll over in an HSA each year, there are annual contribution limits set by the IRS. For 2021, the contribution limits are $3,600 for individuals and $7,200 for families. These limits may change from year to year, so it's essential to stay informed about current regulations.

By taking advantage of the rollover feature of an HSA, you can steadily build up a significant sum of money to cover future medical expenses. With no limit on rollover amounts, an HSA can be a valuable tool in your financial planning.

Did you know that Health Savings Accounts (HSAs) are not just a means to cover current medical expenses but also a powerful tool for long-term savings? The great news is that every year, all the money you contribute to your HSA rolls over completely with no limits on the total amount. This provides you with an incredible advantage in planning for health-related costs in the future.