Can an HSA Account Be Closed Due to Inactivity?

Health Savings Accounts (HSAs) are a valuable tool for saving money tax-free to cover qualified medical expenses. One common question that arises is whether an HSA account can be closed due to inactivity.

Generally, HSAs do not have strict rules about account activity, meaning that they typically do not close due to inactivity alone. However, there are some important points to consider:

• If your HSA has a balance but you are no longer eligible to contribute to it (e.g., due to changes in your health insurance coverage), you can still use the funds for qualified medical expenses.
• While most HSAs are designed to be long-term savings vehicles, some providers may charge maintenance fees for inactive accounts. Make sure to review your HSA provider's policies to understand any potential fees.
• It's a good practice to periodically check on your HSA account, even if you're not contributing regularly. This ensures you're aware of any changes in fees or investment options that may impact your savings.

In summary, while HSAs generally do not close due to inactivity, it's essential to stay informed about your account status and any potential fees that may apply.




Have you ever wondered if an HSA account can be closed simply because it’s sitting idle? While HSAs are generally resilient against inactivity closure, understanding how they operate can save you from potential pitfalls.