HSA Limit Rollover: Understanding How HSA Limits Work

If you have a Health Savings Account (HSA), you may be wondering about HSA limit rollover. HSA limit rollover refers to the ability to carry over unused funds from one year to the next in your HSA account. This feature is one of the many benefits of HSAs that make them a valuable tool for managing healthcare expenses.

Here's how HSA limit rollover works:

• Each year, the IRS sets the maximum contribution limit for HSAs. For 2021, the limit is $3,600 for individuals and $7,200 for families.
• Any contributions you make to your HSA that are under the IRS limit are rolled over to the next year.
• Unused funds in your HSA continue to grow tax-free, year after year, allowing you to save for future healthcare expenses.
• Unlike flexible spending accounts (FSAs), there is no
  

  Understanding HSA limit rollover is essential for maximizing the benefits of your Health Savings Account (HSA). Not only do you have the flexibility to carry over unused funds to the next year, but this allows you to strategically save for healthcare costs down the road.