What Happens to My HSA if Company Shuts Down?

Health Savings Accounts (HSAs) are a valuable tool for saving and paying for healthcare expenses tax-free. However, many individuals may wonder what happens to their HSA if their company shuts down.

If your company shuts down, here is what typically happens to your HSA:

• Your HSA belongs to you, not your employer. Therefore, you will still have access to the funds in your HSA even if your company goes out of business.
• You can continue to use the funds in your HSA to pay for qualified medical expenses.
• You can also keep contributing to your HSA if you have another job with a high deductible health plan.
• It's essential to review the fees associated with your HSA, as they may change if your company shuts down.
• If you no longer have a high deductible health plan, you can still use the funds in your HSA for non-medical expenses, but you will have to pay taxes on the withdrawals.

Remember to keep track of your HSA information, even if your company ceases operations, to ensure you can continue to manage and utilize your funds effectively.

Health Savings Accounts (HSAs) are individuals' ownership and are not tied to your employer. This means that even if your company shuts down, your HSA remains intact and you can access the funds anytime.