When it comes to carrying over funds from your Health Spending Account (HSA) or Wellness Spending Account (WSA) from one year to the next, it depends on how your employer has set up your plan. Here’s a guide to understanding the carryover option and how it works on our system.
1. Check Your Plan for Carryover Eligibility
The first step is to check whether your employer allows carryover of funds. You can find this information by reviewing your plan details on your dashboard:
If it says "Carryover: YES" – Your employer allows you to carry over any unused funds from the previous year into the new year. If there is a limit to how much you can carry over, you'll see this in your plan details as well!
If it says "Carryover: NO" – Your employer does not allow carryover, meaning it's a “use it or lose it” type of benefit.
*Remember, your spending account is fully employer-funded, so there’s no premium or personal expense that you’re “losing” if funds aren’t used. However, you may be missing out on the benefit balance that could have been used for eligible expenses.
2. Automatic Carryover for Eligible Plans
If your plan does allow carryover (designated by "Carryover: YES"), the process is automatic. Here’s how it works:
It's Automatic! – Our system will automatically carry over any unused funds from the previous year into the new year, allowing you up to an additional year to use those funds.
Carryover for One Year – Funds will only carry over for a maximum of one year. as that's the CRA rule. Beyond that period, any remaining carryover funds will expire.
There’s no need to take any action to enable this – if you have eligible unused funds, they’ll roll over automatically.
3. Make the Most of Your Carryover
To maximize your carryover and ensure your claims process smoothly, keep in mind these tips:
Submit Receipts in Sequential Order – Submit your claims from oldest to newest (by service date). Our system will first draw from any carryover funds before using your current year’s balance, helping you optimize your account usage.
By staying informed about your plan’s carryover details and following these best practices, you can make the most of your benefits each year. If you have additional questions about your plan’s setup, feel free to reach out to our support team at support@getmyhsa.com.