What Happens to HSA Account When You Change Jobs?

Changing jobs can bring about a lot of changes in your life, including what happens to your Health Savings Account (HSA). When you switch jobs, there are several scenarios that can occur with your HSA:

1. You can keep your HSA account: Your HSA is yours to keep, and you don't lose it when you change jobs. You can continue using the funds for qualified medical expenses even if you're no longer with your previous employer.

2. You can no longer contribute to your HSA: If your new employer doesn't offer an HSA or you're not eligible to contribute to one, you won't be able to add more funds to your existing HSA, but you can still use the existing balance for medical expenses.

3. You can transfer your HSA: If you prefer, you have the option to transfer your HSA to a new provider. This way, you can continue managing your funds with a different financial institution while keeping the tax advantages of an HSA.

4. You can withdraw the funds: In some cases, if you don't want to keep your HSA or transfer it, you can choose to withdraw the funds. However, be aware that non-qualified withdrawals may incur taxes and penalties.

Remember to consider the best option for your situation when changing jobs to make the most of your HSA funds.

When you change jobs, one of the most important things to consider is your Health Savings Account (HSA). The good news is, your HSA stays with you, regardless of your employment status.