What Happens to HSA When I Leave Company?

Leaving a company can bring about many changes, including what happens to your Health Savings Account (HSA). An HSA is a valuable tool for managing healthcare expenses, but what happens to it when you depart from your employer?

When you leave a company, here's what typically occurs with your HSA:

• If your HSA is employer-sponsored, you have several options:
• You can leave the funds in the account and continue to use them for eligible medical expenses.
• You can transfer the HSA to a new employer, as long as they offer an HSA-compatible high-deductible health plan.
• You can roll over the HSA to an individual HSA account with a financial institution of your choice.
• If your company contributed to your HSA, make sure you understand any vesting requirements or conditions for keeping those funds.
• If you leave the funds in the HSA and continue to incur qualified medical expenses, you can still use the money tax-free.
• It's essential to stay informed about your HSA options when transitioning between jobs to make the most of this valuable benefit.

When you leave your company, it's essential to understand how your Health Savings Account (HSA) is impacted. An HSA is an important financial resource for managing medical expenses, and there are a few paths you can take.

Typically, if your HSA is tied to your employer, you might consider the following options:

• Keep your HSA: You can choose to leave the money in your HSA, which will still be available for qualifying medical expenses, allowing you to use it tax-free.
• Transfer to a new employer: If your new company offers an HSA-compatible high-deductible health plan, you can transfer your account over for continued tax benefits.
• Roll it over: Alternatively, you have the option to roll over your HSA into an individual account at a financial institution of your choice, which might offer better investment options or lower fees.