Understanding HSA Contribution Carryover | HSA Awareness

Many people wonder about HSA contribution carryover and how it works. Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One important feature of HSAs is the ability to carry over unused contributions from year to year.

When it comes to HSA contribution carryover:

• Contributions made to an HSA are not subject to expiration at the end of the year like some other types of accounts.
• Any funds left in your HSA at the end of the year will roll over to the following year, allowing you to continue saving for future medical expenses.
• There is no limit to how much you can carry over in your HSA from year to year.
• Having funds carry over can help you build a substantial health savings nest egg over time.

It is important to note that while HSA contributions can be carried over, the annual contribution limits set by the IRS still apply. As of 2021, the maximum annual contribution limits for an individual with self-only coverage is $3,600 and for an individual with family coverage is $7,200.

Understanding how HSA contribution carryover works can help you make the most of your health savings account and plan for your future medical needs.

Health Savings Accounts (HSAs) are not just a smart way to save on medical costs; they offer the fantastic feature of contribution carryover, letting you utilize your savings over multiple years.