Certified Application Counselor Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer is Health Savings Account (HSA). HSAs are designed to allow individuals to save money for medical expenses on a tax-advantaged basis. One of the key features of HSAs is that funds can carry over from year to year without any cap, meaning that there is no "use it or lose it" rule. This flexibility allows account holders to accumulate savings over time for future healthcare costs, as the funds remain in the account until they are needed.

In contrast, Flexible Spending Accounts (FSAs) typically have a limit on how much can be rolled over from one year to the next, often requiring the funds to be used within a specific time frame or risk forfeiture. Health Reimbursement Arrangements (HRAs) are also funded by an employer and can have specific terms regarding fund rollover, which may not be as flexible as HSAs. A Health Savings Card is not a type of account; rather, it typically refers to a card used to access funds within an HSA or other similar accounts, thus not being independently capable of carrying over funds.