What Happens to My HSA Account When I'm Terminated?

When you're terminated from your job, you may wonder what happens to your Health Savings Account (HSA). An HSA is a savings account that allows you to set aside pre-tax money to pay for qualified medical expenses.

Here's what happens to your HSA account when you're terminated:

• Ownership: Your HSA is fully owned by you, so it stays with you even after you leave your job.
• Contributions: You can continue to use the funds in your HSA for qualified medical expenses, regardless of your employment status.
• New Contributions: If you're no longer enrolled in a High Deductible Health Plan (HDHP), you can't contribute to your HSA, but you can still use the existing funds for medical expenses.
• COBRA: If you elect for COBRA coverage, you can use your HSA funds to pay for the premiums.
• Unused Funds: Any remaining balance in your HSA continues to roll over year after year, there's no expiration date.

When you leave your job, perhaps due to termination, it's important to understand the fate of your Health Savings Account (HSA). An HSA is a personal savings tool that allows you to store pre-tax dollars for qualifying medical services.

Here's a detailed look at what awaits your HSA account post-termination:

• Ownership: Your HSA is individually owned, ensuring that it remains yours even after you part ways with your employer.
• Access to Funds: You still have access to the resources in your HSA for eligible healthcare expenses, no matter your job situation.
• Contribution Options: If you've stepped away from a High Deductible Health Plan (HDHP), you won't be able to add new funds, but fear not—you can keep spending from your existing HSA balance for medical costs.
• COBRA Benefits: Opting for COBRA coverage? You can tap into your HSA to cover the premiums, providing financial relief in a transitional period.
• Roll-over Advantage: Any remaining money in your HSA isn't lost; it rolls over indefinitely, offering you peace of mind when planning for future healthcare expenses.