What Happens to My HSA When I No Longer Have a HDHP?

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Keeping your HSA after leaving HDHP

When you no longer have a High Deductible Health Plan (HDHP), your Health Savings Account (HSA) remains yours to keep and use for eligible medical expenses. However, there are a few things to consider:

1. You can no longer contribute to your HSA if you are not enrolled in an HDHP.

2. You can still withdraw funds from your HSA for qualified medical expenses even if you no longer have an HDHP.

3. If you withdraw funds for non-qualified expenses when you no longer have an HDHP, those withdrawals will be subject to income tax and may incur a penalty if you are under 65.

4. You can use your HSA funds for non-medical expenses penalty-free once you reach age 65, but those withdrawals will be subject to income tax.

5. It's important to manage your HSA funds wisely and keep track of any changes to your health insurance coverage to make informed decisions about using your HSA.

What happens to your HSA when you transition away from a High Deductible Health Plan (HDHP)? Rest assured, your Health Savings Account (HSA) remains intact and continues to serve as a valuable resource for eligible medical expenses.