What To Do With Rollover FSA Money If You Got an HSA?

If you have a Flexible Spending Account (FSA) and you are considering switching to a Health Savings Account (HSA), you may wonder what to do with any remaining FSA funds. It's important to understand the options you have for handling rollover FSA money when transitioning to an HSA.

Here are some key points to consider:

• Unused FSA funds can often be rolled over into an HSA if certain conditions are met.
• Check with your FSA provider to see if they allow rollovers to an HSA.
• If rollovers are permitted, ensure that the rollover process is completed correctly to avoid any tax implications.
• Alternatively, you can use up your FSA funds before making the switch to an HSA.
• Some employers may have specific rules regarding the use of FSA funds, so be sure to consult with your HR department.

Transitioning from an FSA to an HSA can offer long-term benefits such as tax advantages and the ability to save for future healthcare expenses. By understanding how to handle rollover FSA money, you can make a smooth transition to an HSA while maximizing your healthcare savings.

Switching from a Flexible Spending Account (FSA) to a Health Savings Account (HSA) raises a common question: what happens to those unused FSA funds? Understanding your options for rolling over FSA money into an HSA can help you maximize your healthcare savings.