Understanding HSA Funds Rollover: What Does It Mean?

When we say that HSA funds roll over, it means that any money you contribute to your Health Savings Account in a given year does not expire. Instead, it carries over from year to year, allowing you to continue using these funds for qualified medical expenses.

Essentially, the funds in your HSA account are yours to keep and will not vanish at the end of the year if you haven't used them all up. This rollover feature sets HSAs apart from other types of healthcare accounts, like FSAs (Flexible Spending Accounts), which often have a 'use it or lose it' rule.

Here are some key points to remember about HSA funds rollover:

• Contributions made to your HSA are not subject to expiration.
• The money in your HSA is yours, and it stays in your account until you use it.
• You can invest the funds in your HSA to potentially grow your savings over time.
• There is no annual limit on how much money can roll over from year to year.
• HSA funds can be used not only for current medical expenses but also for future healthcare needs, including in retirement.

The beauty of HSA funds rolling over year after year is that you get a chance to save for those unexpected medical expenses without the pressure of losing your money. You can contribute up to the maximum limit each year, and any unused funds will simply carry over to the next year, providing you with a safety net for your healthcare costs.