What Happens to HSA when Laid Off? - Explained

As the economy fluctuates, layoffs unfortunately become a reality for many individuals. If you have a Health Savings Account (HSA) through your employer, you may wonder what happens to your HSA when you are laid off.

When facing a layoff situation, here's what typically happens to your HSA:

• Your HSA belongs to you, not your employer. Therefore, it stays with you even after you are laid off.
• You can continue to use the funds in your HSA for eligible medical expenses even if you are no longer employed.
• If you start a new job with a different health insurance plan, you can still keep and use your existing HSA funds.

It's essential to understand the implications of a layoff on your HSA to make informed decisions about your healthcare expenses.

When you experience a layoff, it's natural to feel concerned about your financial and healthcare stability. However, rest assured that your Health Savings Account (HSA) is yours to keep.