How Much of HSA Rolls Over? Explained

Health Savings Accounts (HSAs) are a valuable tool for individuals looking to save for medical expenses while enjoying tax benefits. One common question that people have about HSAs is how much of the balance rolls over from year to year. The answer is that unlike Flexible Spending Accounts (FSAs), HSAs do not have a 'use it or lose it' rule. This means that the money you contribute to your HSA rolls over indefinitely, allowing you to build up a substantial balance over time.

Here are some key points to keep in mind about how much of your HSA rolls over:

• All funds in your HSA, including contributions from your employer and yourself, roll over from year to year.
• There is no limit to the amount of money that can roll over in your HSA.
• You can continue to contribute to your HSA year after year, further building up your savings for future medical expenses.
• Any interest or investment earnings on the funds in your HSA also stay in the account and continue to grow tax-free.

It's important to note that while the funds in your HSA roll over indefinitely, there are limits to how much you can contribute to your HSA each year. For 2021, the contribution limits are $3,600 for individuals and $7,200 for families. If you are over the age of 55, you can make an additional catch-up contribution of $1,000.

In conclusion, the money you contribute to your HSA doesn't expire at the end of the year. Instead, it rolls over indefinitely, making an HSA a powerful tool for saving for healthcare expenses both now and in the future.

Health Savings Accounts (HSAs) offer a unique advantage when it comes to saving for healthcare costs, and one of the most appealing features is that there is no expiration on your funds. Unlike Flexible Spending Accounts (FSAs), which require you to utilize your contributions within the year, HSAs allow you to carry over your unused funds to the next year indefinitely. This flexibility is a major asset for individuals who want to prioritize their healthcare savings.