What Happens to My HSA if I Lose My Job?

Losing your job can be a stressful situation, especially when it comes to matters like health savings accounts (HSAs). If you find yourself in this situation, you may be wondering what will happen to your HSA. Here is everything you need to know:

1. Your HSA remains yours: Your HSA is your personal account, and the funds in it belong to you. Even if you lose your job, the money in your HSA stays with you.

2. You can continue using the funds: The good news is that you can still use the money in your HSA for qualified medical expenses, regardless of your employment status.

3. You cannot contribute to your HSA: Once you lose your job, you will no longer be able to contribute to your HSA. However, you can still use the existing funds for eligible expenses.

4. Explore COBRA: If you lose your job, you may be eligible for COBRA continuation coverage, which allows you to keep your health insurance. You can use your HSA funds to pay for COBRA premiums.

5. Consider other options: If you do not opt for COBRA or have exhausted your HSA funds, you can explore other health insurance options like marketplace plans or Medicaid.

With these points in mind, losing your job does not mean losing access to your HSA funds. Your money remains safe and can still be used for qualified medical expenses.

When you lose your job, it can feel like everything is spiraling out of control, but your health savings account (HSA) is one thing you don’t have to worry about.