What Happens to My HSA If I Quit My Job?

Leaving a job can be a stressful time, and understanding what happens to your Health Savings Account (HSA) is essential. If you quit your job, your HSA remains yours, and you have several options on how to manage it:

• You can keep using the funds in your HSA for eligible medical expenses even after leaving the job.
• If you switch to a new job that offers an HSA-eligible health plan, you can continue contributing to your existing HSA or open a new one.
• You can also use the funds in your HSA to pay for COBRA premiums, long-term care insurance, or Medicare premiums.
• Alternatively, you can withdraw the funds for non-qualified expenses, but keep in mind that you will owe income tax and a 20% penalty if you are under 65 years old.

It's essential to consider these options carefully and consult with a financial advisor to make the best decisions for your financial health.

When you leave a job, understanding the fate of your Health Savings Account (HSA) is crucial. Fortunately, your HSA stays intact and continues to be your asset, providing you with multiple avenues to manage it:

• After resigning, you can still utilize your HSA funds for eligible medical expenses, allowing you to retain access to crucial health resources.
• If your next employer offers an HSA-compatible health plan, you're in luck! You can contribute to your existing HSA or even set up a new one, making it easy to keep saving.
• Another perk is the ability to use your HSA funds to cover costs like COBRA premiums, long-term care insurance, or even Medicare premiums, ensuring you remain covered.
• While it's possible to withdraw HSA funds for non-qualified expenses, it's important to be aware of potential penalties: if you're under 65, you'll face income tax and a 20% penalty on those amounts.

Taking the time to consider these options can make a significant difference in your financial future. Seeking advice from a financial advisor can help you navigate these choices effectively.