What Happens to HSA Money When You Quit?

When you resign from a job or leave an employer, you may be wondering what happens to the money in your Health Savings Account (HSA). Here's a breakdown of what you need to know:

If you have contributed to the HSA:

• The money you contributed to your HSA belongs to you, even if it was through payroll deductions. It stays in your HSA and continues to be available for qualified medical expenses.

If your employer contributed to the HSA:

• Any funds deposited by your employer belong to you immediately, regardless of your employment status. These funds are also yours to use for eligible medical expenses.

What happens next?

• You can continue to use the funds in your HSA for qualified medical expenses, even after leaving your job.
• If you are no longer covered by a High Deductible Health Plan (HDHP), you can still use the HSA funds for qualifying medical expenses. However, you cannot make further contributions to the HSA until you are again covered by an HDHP.
• You may also have the option to transfer your HSA to a new provider or roll it over to a different account.

Key takeaways:

• Your HSA money stays with you, even if you change jobs or leave employment.
• You can continue to use the funds for qualifying medical expenses.
• Consider your options for managing the HSA if you no longer have an HDHP.

When you resign from your job, it's natural to have questions about your Health Savings Account (HSA) and the funds within it. Rest assured, the money you contributed to your HSA is yours to keep, and it will remain available for qualified medical expenses.