Is There a Cap to Your HSA Roll Over?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while also saving for the future. One common question that many individuals have is whether there is a cap to their HSA rollover amount. The good news is that unlike Flexible Spending Accounts (FSAs), HSAs do not have a use-it-or-lose-it policy. This means that any funds you contribute to your HSA will roll over from year to year, allowing you to build up savings over time.

There are several key points to keep in mind regarding the rollover of HSA funds:

• HSAs have no expiration date on the funds, so you can continue to accumulate savings without worrying about losing them.
• You can invest the funds in your HSA, allowing them to grow over time and potentially earn more money.
• Contributions to your HSA can be made by you, your employer, or both, up to the annual contribution limit set by the IRS.
• If you change jobs or health insurance plans, your HSA funds are still yours to keep and use for eligible medical expenses.

It's important to note that while there is no cap on the rollover amount in your HSA, there is an annual contribution limit set by the IRS. 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, HSAs offer a great way to save for healthcare expenses both now and in the future, with the added benefit of being able to roll over unused funds from year to year. Understanding the rules and limits of your HSA can help you make the most of this valuable savings tool.

Health Savings Accounts (HSAs) are a fantastic option for those looking to take control of their healthcare spending while also saving for future medical needs. One of the most frequently asked questions is concerning the rollover limit for HSA funds. Fortunately, unlike Flexible Spending Accounts (FSAs), HSAs offer flexibility with no use-it-or-lose-it rule. This means you can comfortably roll over unused contributions from year to year, allowing your savings to grow indefinitely.