Which statement accurately describes the portability and rollover of Health Savings Accounts (HSAs)?

• A. FSA funds can roll over annually.
• B. HSAs are owned by the employer.
• C. HSAs are portable and funds roll over year to year.
• D. Contributions to an HSA are taxed.

Answer: (C)

The main idea is that Health Savings Accounts are owned by the individual and remain with you, so you can take the account with you and the funds carry over from year to year. This means if you switch jobs or change health plans, the HSA stays yours, and any unspent money stays in the account to be used later. The balance grows tax-advantaged over time, and qualified medical withdrawals are tax-free.

Why this is the best description: HSAs are designed to be personal, portable tools for paying for medical expenses. They aren’t tied to a specific employer, and the money you put in stays in the account and rolls over each year, rather than being forfeited at year-end.

For contrast: a statement about FSA funds rolling over would describe an FSA rather than an HSA; claiming the HSA is owned by the employer is incorrect, since the account is owned by you; and saying contributions to an HSA are taxed ignores that HSA contributions are tax-deductible or pre-tax, with tax-free withdrawals for qualified medical expenses.