How to Close an Old HSA: A Step-by-Step Guide

As you navigate through your financial journey, you may find yourself in a situation where you need to close an old Health Savings Account (HSA). Whether you're consolidating accounts or no longer qualify for an HSA, knowing how to properly close an old HSA is important to avoid penalties and ensure a smooth process.

To close an old HSA, you can follow these simple steps:

1. Check the balance: Before closing your old HSA, make sure there are no remaining funds in the account. You can transfer or spend the remaining balance before proceeding with the closure.
2. Contact your HSA provider: Reach out to your HSA provider either through their online portal, customer service hotline, or in person to initiate the account closure process. They will guide you on the necessary steps and paperwork required.
3. Complete the closure form: Your HSA provider will provide you with a closure form that you need to fill out accurately. This form typically includes your account information, reason for closure, and any additional instructions.
4. Submit the form: Once you have completed the closure form, submit it to your HSA provider for processing. Make sure to double-check all the information provided to avoid any delays.
5. Verify the closure: After submitting the closure form, follow up with your HSA provider to confirm that the account has been successfully closed. Request a written confirmation for your records.

Closing an old HSA is a straightforward process, but it's essential to ensure that you adhere to the specific guidelines set by your HSA provider to avoid any complications. By following these steps, you can close your old HSA efficiently and without any hassle.

Are you considering closing an old Health Savings Account (HSA)? It’s key to understand the process to avoid penalties. To start, check your account balance. If a balance remains, evaluate options to transfer or spend the funds before proceeding.