Can unused savings in a Health Savings Account (HSA) be carried forward to future years?

The correct answer indicates that unused savings in a Health Savings Account (HSA) can indeed be invested, which is a key feature of HSAs. One of the advantages of HSAs is that they allow individuals to accumulate savings over time without the urgency to spend the funds within a single year. This characteristic not only enables the funds to roll over annually but also offers the opportunity to invest these savings in various investment vehicles, such as stocks or mutual funds, depending on the HSA provider's offerings.

By investing the unused balance, individuals can potentially grow their savings over the long term to cover future medical expenses. The flexibility to carry forward and invest the funds differentiates HSAs from many other types of savings accounts, making them a beneficial tool for long-term healthcare cost management.