What Happens to HSA if You Leave HDHP?

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare expenses while enjoying tax benefits. But what happens to your HSA if you decide to leave your High Deductible Health Plan (HDHP)?

If you leave your HDHP, here's what happens to your HSA:

• You can keep your HSA: Your HSA is yours to keep even if you no longer have an HDHP. You can continue to use the funds in the account for eligible medical expenses.
• You cannot contribute to your HSA: If you are no longer enrolled in an HDHP, you are not eligible to contribute to your HSA. However, any existing funds in the account remain available for you to use.

It's important to understand the implications of leaving your HDHP on your HSA to make informed decisions about your healthcare and finances.

Health Savings Accounts (HSAs) are a fantastic way to save money on healthcare costs while enjoying significant tax advantages. If you've decided to step away from your High Deductible Health Plan (HDHP), you might wonder how this impacts your HSA. The good news is that you can keep your HSA, and the funds within it can still be utilized for eligible medical expenses, even without an HDHP.