Can You Contribute to Your HSA After You Leave Your Job?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while enjoying tax benefits. One common concern that individuals have is what happens to their HSA contributions if they leave their job.

The good news is that you can continue to contribute to your HSA even after you leave your job, as long as you meet the IRS eligibility requirements. Here are some important points to keep in mind:

• When you leave your job, your HSA remains yours, and you can keep and use the funds for qualified medical expenses.
• You cannot contribute to your HSA with pre-tax dollars through payroll deductions once you leave your job.
• If you have a new job with a high deductible health plan (HDHP), you can continue contributing to your HSA through your new employer.
• You can also make contributions to your HSA on your own with post-tax dollars, which you can then deduct from your taxable income when you file your taxes.
• For 2021, the contribution limits are $3,600 for individuals and $7,200 for families. Individuals aged 55 and older can make an additional catch-up contribution of $1,000.

It's important to remember that HSA funds roll over from year to year, so you won't lose the money if you don't use it all within a certain time frame. This makes HSAs a flexible and long-term savings tool for healthcare expenses.

When you transition away from your current job, your Health Savings Account (HSA) stays intact and is solely yours to manage, providing a wealth of tax advantages for upcoming medical needs.