What Happens to My HSA When I'm Fired?

Losing a job can be a stressful time, and you might be worried about what will happen to your Health Savings Account (HSA) when you're fired. Rest assured, your HSA belongs to you, not your employer, so you won't lose it just because you're no longer working for the company.

Here's what you need to know about your HSA when you're fired:

• Your HSA funds are yours to keep: The money in your HSA is yours to use for qualified medical expenses, even if you lose your job.
• You can continue using your HSA: You can still use your HSA funds to pay for medical expenses, including COBRA premiums, even after you're fired.
• You can't contribute to your HSA without a high deductible health plan: If you lose your job and the high deductible health plan that was connected to your HSA, you won't be able to make new contributions to your HSA. However, you can still use the funds that are already in the account.

While losing your job can be tough, knowing that your HSA is still available to cover medical expenses can provide some peace of mind during a challenging time.

When navigating a job loss, it’s important to understand that your Health Savings Account (HSA) is a financial resource that remains yours, independent of your employer. This means you can continue to use the funds in your HSA for eligible medical expenses even after your employment ends.