What Happens to My HSA Balance When I Quit? - All You Need to Know

When you quit your job, you may be wondering what happens to your HSA balance. Here's all you need to know about managing your HSA account after you leave your job.

When you leave your job, your HSA balance remains yours; it is portable and goes with you. You can continue to use the funds for qualified medical expenses. However, there are some important factors to consider:

• If your employer was making contributions to your HSA, those contributions will stop once you leave the job.
• You can no longer make contributions to your HSA from your paycheck since you're not an employee anymore, but you can still contribute on your own if you have another HSA-eligible health insurance plan.
• If you use the HSA funds for non-qualified expenses before age 65, you will incur a tax penalty.
• If you enroll in Medicare, you can no longer contribute to an HSA, but you can still use the funds for qualified medical expenses tax-free.

It's essential to understand the implications of quitting your job on your HSA balance and plan accordingly to ensure you maximize the benefits of your health savings account.

Wondering what will happen to your HSA balance when you quit your job? The good news is that your HSA is your personal account, and its balance remains intact no matter your employment status.