What Happens to Money Added to HSA When I Quit?

When you contribute money to a Health Savings Account (HSA) and then decide to quit your job, there are specific outcomes regarding the funds you have accumulated in the account.

If you leave your job for any reason, the money in your HSA remains yours to keep.

Here is what happens to the money added to your HSA when you quit:

• The funds in your HSA are yours to keep, regardless of your employment status.
• You can continue to use the money in your HSA for qualified medical expenses even after leaving your job.
• If you change jobs, you can still keep your HSA and use the funds for eligible healthcare costs.
• You have the option to roll over the HSA funds into a new HSA account if you wish.
• It's important to note that any funds withdrawn for non-qualified expenses may be subject to taxes and penalties.

When it comes to your Health Savings Account (HSA), you may wonder what happens to your hard-earned money when you decide to quit your job. The good news is that your HSA funds are yours to keep, no matter where your career takes you.

If you leave your job, here’s what you should know about your HSA:

• Your contributions remain your property and won't disappear with your employment.
• The money in your HSA can still be used for qualified medical expenses at any time, even if you no longer work for your employer.
• Should you transition to a different job, rest assured that you can continue to access and use your HSA funds for healthcare costs.
• If desired, you can easily roll over your existing HSA funds into a new HSA account at your new employer.
• Keep in mind, though, that if you withdraw funds for non-qualified expenses, you’ll likely face taxes and potential penalties.