Do You Have to Rollover a HSA When You Change Jobs?

Changing jobs can be an overwhelming process, and it often comes with a lot of decisions to make. One common concern for many individuals is what happens to their Health Savings Account (HSA) when they change jobs.

So, do you have to rollover an HSA when you change jobs? The short answer is no, you are not required to rollover your HSA when you change jobs. Your HSA is yours to keep, and you have several options when transitioning to a new job:

• You can leave your HSA with your current provider.
• You can transfer your HSA to a new provider.
• You can also rollover your HSA funds to an Individual Retirement Account (IRA).

It is important to consider the benefits and fees associated with each option before making a decision. Leaving your HSA with your current provider may be convenient, but you could be subject to account maintenance fees. Transferring your HSA to a new provider can help you continue saving for future healthcare expenses seamlessly.

On the other hand, rolling over your HSA funds to an IRA gives you more investment options and potential for growth. However, it's essential to follow the IRS guidelines to avoid any penalties.

When changing jobs, it's also a good time to review your overall financial strategy and healthcare needs. Understanding how your HSA fits into your financial plan can help you make informed decisions about what to do with your account.

Changing jobs can bring excitement but also uncertainty, especially regarding your Health Savings Account (HSA). The great news is that you don’t have to rollover your HSA when shifting between employers; it’s yours to manage as you see fit. Here are your options: you can keep it with your current provider, transfer it to a new provider, or even rollover your HSA funds to an Individual Retirement Account (IRA) to diversify your retirement savings.