What Happens to HSA When You Leave Employer?

When you leave your employer, you may wonder what happens to your Health Savings Account (HSA) that you have been contributing to. An HSA is a valuable financial tool that allows you to save money for medical expenses tax-free. Here's what you need to know about your HSA when transitioning between jobs:

1. Ownership of HSA: Your HSA belongs to you, not your employer. You can keep your HSA even if you change jobs or retire.

2. Access to Funds: You can continue to use the funds in your HSA for eligible medical expenses, regardless of your employment status.

3. Contributions: When you leave your job, you can no longer contribute to your HSA through payroll deductions. However, you can still make contributions on your own.

4. Changing HSA Providers: If your employer set up your HSA with a specific provider, you can choose to transfer it to a different HSA provider of your choice.

5. Roll Over Balance: Any balance in your HSA remains with you and continues to grow tax-free. There is no expiration date for using the funds in your HSA.

6. COBRA Coverage: If you elect for COBRA coverage after leaving your job, you can use your HSA to pay for qualified medical expenses during that period.

7. Avoiding Fees: To avoid any unnecessary fees, it's essential to understand the fee structure of your HSA and plan accordingly when you leave your employer.

8. Communication: Keep communication open with your HSA provider to ensure a smooth transition and continue to make the most of your HSA benefits.

When embarking on a new job journey, it’s important to consider what happens to your Health Savings Account (HSA). Remember, your HSA is your personal asset, and you retain ownership regardless of your employer changes.