Do I Keep My Work HSA Funds if I Don't Have a HDHP Anymore?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while enjoying tax benefits. If you have an HSA through your workplace and decide to switch from a High Deductible Health Plan (HDHP) to a different insurance plan or no insurance at all, you may wonder what happens to the funds in your HSA. Let's explore this common question.

When you no longer have an HDHP, you are still the owner of the funds in your HSA. The money in your HSA is yours to keep, and you can continue using it for qualified medical expenses even if you are not enrolled in an HDHP anymore.

It's important to note that while you can keep the funds in your HSA, you cannot make new contributions to the account unless you are covered by an HDHP. You can use the existing funds for eligible medical expenses, including copayments, deductibles, prescriptions, and other qualified healthcare costs.

Health Savings Accounts (HSAs) provide an excellent way to manage your healthcare expenses, offering tax-free savings for qualified medical costs. If you've decided to move away from a High Deductible Health Plan (HDHP), you may be puzzled about what happens to your HSA funds. The good news is that even without an HDHP, you retain ownership of your HSA funds and can continue to use them for eligible medical expenses.