Can You Use HSA Money If You Leave High Deductible Plan?

Are you wondering what happens to your HSA (Health Savings Account) money if you leave a high deductible health plan? Let's break it down for you.

Firstly, HSA funds belong to you, and unlike an FSA (Flexible Spending Account), they do not expire at the end of the year. So, even if you leave your high deductible health plan, you can still use the money in your HSA for qualified medical expenses.

Here's how it works:

• You can continue to use your HSA funds for eligible medical expenses even if you switch to a different health insurance plan, including a non-HDHP (High Deductible Health Plan).
• Some key points to remember:
• If you no longer have an HDHP, you cannot make new contributions to your HSA.
• You cannot use HSA funds for non-medical expenses without penalty if you are under 65 years of age.
• It's important to keep track of your receipts for medical expenses to ensure you are using your HSA funds correctly.
• After age 65, you can use the money in your HSA for non-medical expenses without penalty, though regular income tax would still apply.
• Consider consulting a financial advisor for personalized advice on managing your HSA funds wisely.

Remember, your HSA is a valuable tool for saving for future medical expenses, offering tax benefits and flexibility in healthcare spending.

If you’re concerned about what happens to your HSA funds after leaving a high deductible health plan, don’t worry! Your HSA money is yours to keep and can still be used for qualified medical expenses, even if you’re on a different health insurance plan.