What Happens to HSA When You Quit Your Job?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

What stays true about your HSA

When you quit your job, you may be wondering what happens to your HSA (Health Savings Account). An HSA is a tax-advantaged account that individuals can use to save money for medical expenses. If you leave your job, here's what generally happens to your HSA:

1. Ownership: Your HSA belongs to you, not your employer. You can keep the account and continue to use the funds for eligible medical expenses.

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

3. COBRA: If you elect for COBRA continuation coverage, you can use your HSA funds to pay for qualified medical expenses while on COBRA.

Using your HSA after leaving job

4. New Employer: If you start a new job that offers an HSA-eligible high deductible health plan, you can continue to use your existing HSA or roll it over to a new HSA.

5. Fees: Some HSAs may charge monthly maintenance fees, so it's essential to review the fee structure and consider transferring your HSA to an account with lower fees if needed.

Overall, your HSA remains yours even after you quit your job, allowing you to use the funds for medical expenses now or in the future.

When you leave your job, it's important to understand that your Health Savings Account (HSA) remains under your control. This means you can use the funds already in your account for medical expenses at any time, even after you've moved on.