What is the rollover policy for unused funds in my Health Savings Account?

The rollover policy for unused funds in a Health Savings Account, commonly referred to as an HSA, is notably favorable. Unlike Flexible Spending Accounts, the funds in an HSA do not expire at the end of the plan year. Instead, any unused balance at the end of the year rolls over to the next year, allowing account holders to accumulate savings over time. This means that individuals have the flexibility to grow their HSA funds and can use them for qualified medical expenses in the future, without the pressure of losing the remaining funds. Moreover, there is no limit on the amount of funds that can be carried over from year to year. This feature serves as a significant advantage for those who want to save for future health care costs, as it encourages individuals to invest in their health savings without the fear of forfeiting their hard-earned money. Additionally, funds in the HSA can be invested, allowing for potential growth through investments, thus maximizing the benefits of the account. It is essential for individuals to keep in mind that while the funds do roll over indefinitely, the contributions to the HSA are subject to annual contribution limits set by the Internal Revenue Service. Individuals should consult the current guidelines or check their specific account details on the WageWorks Portal or any official resources to understand how these limits may apply to them. Overall, the rollover policy of HSAs provides a great opportunity for long-term savings toward medical expenses.