Can You Still Put Money into Your HSA Once Your Insurance Ends?

If you have a Health Savings Account (HSA) and your insurance ends, you might be wondering if you can still contribute to your HSA. The answer is yes, you can continue to put money into your HSA even after your insurance coverage has ended. An HSA is a versatile savings tool that allows you to save for medical expenses on a tax-advantaged basis, regardless of changes in your insurance status.

Here are some key points to keep in mind:

• Even if you no longer have a high-deductible health plan (HDHP), which is required to contribute to an HSA, you can still use the funds in your existing HSA account towards qualified medical expenses.
• If you have a new insurance plan that is not an HDHP, you can no longer make contributions to your HSA. However, you can still use the funds already in your account for medical expenses tax-free.
• If you become eligible for an HDHP in the future, you can resume contributing to your HSA.
• It's important to note that there are annual contribution limits set by the IRS for HSAs. For 2021, the contribution limit for individuals is $3,600 and for families is $7,200.

So, whether your insurance has ended or you have transitioned to a new plan, you can still make the most of your HSA funds for medical expenses. Stay informed about the rules and benefits of HSAs to maximize your healthcare savings!

If you find yourself in the situation where your health insurance ends but you have a Health Savings Account (HSA), don't worry! You can continue to maintain your HSA and use the funds for qualified medical expenses, even if you no longer have a high-deductible health plan (HDHP).