Can You Make HSA Purchases After Your Last Day of Employment?

Many people wonder about the rules regarding Health Savings Account (HSA) purchases after leaving a job. The good news is that you can still make HSA purchases after your last day of employment.

When you leave your job, your HSA funds are still available for you to use for qualified medical expenses, even if you no longer contribute to the account. This flexibility makes HSAs a valuable tool for managing healthcare costs, even during times of transition.

Here are some key points to keep in mind:

• You can use your HSA funds for qualified medical expenses for yourself, your spouse, and any dependents, even after leaving your job.
• You cannot make new contributions to your HSA once you are no longer enrolled in a high-deductible health plan (HDHP) that is HSA-eligible.
• If you withdraw funds for non-qualified expenses after leaving your job, you may be subject to taxes and penalties.
• It's important to keep track of your expenses and save receipts to prove that your HSA withdrawals were used for qualified medical purposes.

Overall, knowing the rules around HSA purchases after leaving your job can help you make informed decisions about your healthcare expenses and maximize the benefits of your HSA.

After transitioning out of your job, many individuals are often left pondering what happens to their Health Savings Account (HSA). Rest assured, you can continue to access your HSA funds for qualified medical costs even after your employment ends.