Can You Withdraw Money from HSA When You Quit?

One common question people have about Health Savings Accounts (HSAs) is whether they can withdraw money from the account when they quit their job. It's essential to understand the rules and regulations governing HSAs to make informed decisions about your healthcare savings.

Typically, you cannot withdraw money from your HSA when you quit your job, but there are exceptions and considerations to keep in mind:

• When you leave your job, your HSA balance remains yours, and you can continue to use it for eligible medical expenses.
• If you use the HSA funds for qualified healthcare expenses, the withdrawals are tax-free, regardless of your employment status.
• You can also use the HSA funds to pay for COBRA premiums, long-term care premiums, and certain health insurance premiums while receiving unemployment benefits.
• However, if you withdraw money for non-qualified expenses before the age of 65, you may be subject to income tax and additional penalties.
• After reaching the age of 65, you can withdraw funds from your HSA for any reason without penalty, but non-qualified withdrawals will be subject to income tax.

It's crucial to consult a financial advisor or tax professional to fully understand the rules and implications associated with HSA withdrawals when you quit your job.

Did you know that when you quit your job, your Health Savings Account (HSA) is still yours? You can use the funds for qualified medical expenses even after leaving your employer, ensuring your healthcare savings are always secure.