What to Do with My HSA Through Previous Employer?

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Key options for your previous employer HSA

If you have a Health Savings Account (HSA) through your previous employer, you may be wondering what your options are. An HSA is a tax-advantaged savings account that allows you to set aside money for qualified medical expenses. Here are some things you can do with your HSA through your previous employer:

Maintaining, transferring, or rolling over funds

1. Keep the account open and continue using it for qualified medical expenses.

2. Transfer the HSA to a new employer’s plan, if they allow it.

3. Roll over the HSA to an individual HSA account with a financial institution of your choice.

4. Use the funds in the account for non-medical expenses, but be aware of the tax implications.

5. Close the HSA account, but remember to use any remaining funds for qualified medical expenses to avoid penalties.

Withdrawing non-medical and closing safely

It’s important to be aware of your options and choose the best course of action based on your current situation and future needs. Consult with a financial advisor or tax professional if you need guidance on managing your HSA through your previous employer.

If you have an HSA through your previous employer, don’t worry; you still have options that can benefit your future healthcare expenses. An HSA is not just a short-term saving tool, but rather a long-term strategy for managing your health costs. Here’s what you can do:

1. Maintain access to your current account and use it whenever needed for eligible healthcare purchases.

2. Explore the possibility of transferring your HSA funds to your new employer’s HSA if their plan supports such actions.

3. Consider rolling over your HSA into an individual account at a financial institution that meets your needs better—this gives you more control and options for investments.

4. You can even withdraw funds for non-medical expenses, but keep in mind that you’ll face income taxes and a penalty if you’re under 65.

5. If you decide to close your HSA account, ensure to utilize all remaining funds for eligible expenses to avoid incurring any penalties.