What If I Have a HSA from a Previous Year? - Understanding Your Health Savings Account

Having a Health Savings Account (HSA) from a previous year is a common scenario for many individuals. Fortunately, the funds in your HSA do not disappear at the end of the year, unlike a Flexible Spending Account (FSA). This means you can continue to use the money in your HSA for qualified medical expenses in the future.

If you have an HSA from a previous year, here are some important points to consider:

• Unused funds in your HSA roll over from year to year, allowing you to build savings for future healthcare expenses.
• You can continue to contribute to your HSA as long as you are enrolled in a high-deductible health plan (HDHP).
• You can use the funds in your HSA for qualified medical expenses, including prescriptions, doctor visits, and more.
• If you change jobs or health insurance plans, you can still keep and use your existing HSA. It is not tied to your employer.
• HSAs offer triple tax benefits: contributions are tax-deductible, funds grow tax-free, and withdrawals for qualified medical expenses are tax-free.

Overall, having an HSA from a previous year provides you with flexibility, control, and tax advantages when it comes to managing your healthcare expenses. Be sure to take full advantage of your HSA and utilize the funds wisely for your medical needs.

It’s important to remember that a Health Savings Account (HSA) from a previous year is an asset that you can continue to leverage for your healthcare needs. Unlike a Flexible Spending Account (FSA), which has a use-it-or-lose-it policy, your HSA rolls over unused funds every year, allowing you to save up for larger medical expenses in the future.