Can I Withdraw my HSA if I Leave That Plan?

When it comes to Health Savings Accounts (HSAs), many people have questions about what happens to the funds in their HSA if they decide to leave the plan. One common concern is whether they can withdraw their HSA funds if they leave that specific plan. The good news is, the funds in your HSA belong to you, and you have options even if you leave the plan associated with the HSA.

Here's what you need to know:

• If you leave the HSA-qualified high-deductible health plan (HDHP), you can still keep your HSA account.
• You can continue to use the funds in your HSA for eligible medical expenses, even if you are no longer enrolled in an HDHP.
• Alternatively, you can also choose to withdraw the funds for non-medical expenses, but keep in mind that you will have to pay taxes on the amount withdrawn, and if you are under 65, you may also incur a 20% penalty.
• Another option is to leave the funds in your HSA account to grow tax-free for future medical expenses.
• If you start a new HSA-qualified HDHP, you can continue to contribute to your existing HSA or open a new HSA account.

It's essential to understand the rules and regulations surrounding HSAs to make informed decisions about your healthcare savings. If you have any specific questions about withdrawing funds from your HSA or transitioning between plans, it's always a good idea to consult with a financial advisor or a healthcare benefits specialist.

Did you know that the moment you open a Health Savings Account (HSA), you're building a financial resource that's entirely yours? Even if you decide to leave your HSA-qualified high-deductible health plan (HDHP), those funds don’t just disappear. You can retain your HSA, which means you can continue to pay for eligible medical expenses tax-free.