What Happens to My Preloaded HSA Funds When I Leave My Job?

When you leave your job, you may be wondering about your preloaded HSA funds. Health Savings Accounts (HSAs) are a great way to save for medical expenses and are often tied to an employer. Here's what happens to your HSA funds when you change jobs:

1. Ownership of the Account: Your HSA is yours to keep, regardless of employment status. The funds in the account are yours, even if your employer contributed to it.

2. Access to Funds: You can continue to use the funds in your HSA for qualified medical expenses. There is no deadline for using the funds, and they will rollover year after year.

3. Contributions: You can no longer contribute to your HSA if you are no longer enrolled in a high-deductible health plan (HDHP). However, you can still use the existing funds for medical expenses.

4. Withdrawal Penalties: If you withdraw funds for non-qualified expenses before age 65, you may face penalties and taxes. It's important to use the funds for medical expenses to avoid any penalties.

5. Portability: You can transfer your HSA to a new HSA provider if you prefer. This allows you to continue managing your healthcare expenses with ease.

Overall, your preloaded HSA funds are still available to you even after you leave your job. It's essential to understand the rules and regulations surrounding HSAs to make the most of your healthcare savings.

When you transition from one job to another, it's natural to be concerned about your HSA funds. Rest assured, the funds in your Health Savings Account (HSA) are always under your ownership, making your funds available for future healthcare needs, regardless of your employment status.