Can HSA Money Be Used When You No Longer Have an HSA Eligible Plan?

If you no longer have an HSA eligible plan, you may still use your HSA money. Health Savings Accounts allow for tax-free withdrawals at any time for qualified medical expenses, even if you switch to a non-HSA-eligible insurance plan or no longer have health insurance.

Your HSA funds remain yours, so you can continue to use them for medical expenses, for yourself, your spouse, or any dependents. However, if you use the funds for non-qualified expenses before age 65, you will be subject to a 20% penalty in addition to regular income tax.

It's important to note that you cannot contribute to your HSA without an HSA-eligible high-deductible health plan. However, the money already in your HSA can still be utilized as needed.

Even if you no longer have an HSA eligible insurance plan, the funds in your Health Savings Account (HSA) are still available for you to use at any time. This means you can utilize your HSA money for qualified medical expenses, ranging from doctor visits to prescription medications, ensuring that your healthcare needs are still met.