What Happens to a HSA When You Quit? Everything You Need to Know

When you leave your job or quit, you may wonder what happens to your HSA, Health Savings Account. An HSA is a valuable tool for managing healthcare costs, and understanding what occurs with your HSA post-employment is crucial.

Here's what happens to your HSA when you quit:

1. Ownership: Your HSA belongs to you, not your employer. You can keep your HSA even if you change jobs or retire.
2. Contributions: You can no longer contribute to your HSA through payroll deductions once you leave your job. However, you can still make contributions with after-tax dollars.
3. Withdrawals: You can continue to use the funds in your HSA for qualified medical expenses, even after you quit.
4. COBRA: If you elect COBRA coverage after leaving your job, you can use your HSA funds to pay for COBRA premiums.
5. Investment Options: You can continue to invest the funds in your HSA for potential growth, similar to a retirement account.

When you leave your job, you might wonder about the status of your Health Savings Account (HSA). The great news is that the HSA is yours to keep, and understanding your options is essential for ongoing healthcare management.