Do You Get to Keep an HSA If You Leave Your Job?

When it comes to Health Savings Accounts (HSAs), one common question that arises is whether you get to keep an HSA if you leave your job. The simple answer is yes, you do get to keep your HSA even if you leave your job. An HSA belongs to you, not your employer, so it is completely portable and stays with you regardless of your employment status. This portability and ownership are key features of an HSA that make it a valuable tool for managing healthcare expenses.

It's essential to understand the implications of leaving your job with an HSA:

• If you leave your job, you can continue to use the funds in your HSA for qualified medical expenses.
• You can also choose to keep your HSA open and make contributions to it on your own if you have a high deductible health plan (HDHP) in place.
• If you start a new job that offers an HSA-eligible HDHP, you can continue using your existing HSA or roll it over into a new HSA account.
• However, if you no longer have an HDHP, you can still use the funds in your HSA for qualified medical expenses, but you cannot make further contributions to it until you have an HDHP again.

It's crucial to be aware of any potential fees associated with maintaining an HSA outside of your employer, as some financial institutions may charge account maintenance fees or transaction fees. Make sure to review the terms and conditions of your HSA to understand any fees that may apply.

Many people wonder about the fate of their Health Savings Account (HSA) if they decide to leave their job. Luckily, the answer is straightforward: you can keep your HSA when you leave. Since HSAs are entirely owned by you, they are not tied to your employer. This means that even if you change jobs, your HSA—and the funds within it—remain at your disposal, providing essential assistance in covering healthcare-related costs.