Can I Use an HSA That I Previously Funded If I Don't Have an Eligible Account Right Now?

If you've funded a Health Savings Account (HSA) in the past and no longer have an eligible account, you might be wondering what your options are. An HSA is a powerful tool that offers tax advantages and helps you save for future medical expenses. However, the rules around HSAs can be a bit complex, so let's break down whether you can use an HSA that you previously funded even if you don't currently have an eligible account.

When it comes to using an HSA that you funded in the past, here are a few things to consider:

• Once funds are in your HSA, they are yours to keep indefinitely, even if you no longer have an eligible high-deductible health plan (HDHP).
• You can still use the funds in your HSA for qualified medical expenses, regardless of your current health insurance coverage.
• You cannot contribute more money to your HSA if you are not enrolled in an HDHP, but you can continue to use the existing funds for eligible expenses.
• If you use HSA funds for non-qualified expenses while not enrolled in an HDHP, you may face penalties and taxes on the amount withdrawn.

While you cannot make new contributions to your HSA without an eligible HDHP, you can still benefit from the funds you previously deposited. Remember to keep track of your expenses and save your receipts for tax purposes.

If you've previously funded a Health Savings Account (HSA) but no longer have an eligible high-deductible health plan (HDHP), you might feel uncertain about your options. The beauty of an HSA lies in its tax benefits and the ability to save for future medical costs.