What Happens to the HSA Account When I Change Jobs and the Amount Cannot be Rolled Over?

When you change jobs and the amount in your HSA account cannot be rolled over, there are several options available to you regarding your HSA:

1. Keep the Account and Continue Contributing:

• You can choose to keep the HSA account even after changing jobs. This allows you to continue making contributions to the account and using the funds for qualified medical expenses.

2. Use the Funds for Qualified Medical Expenses:

• Regardless of changing jobs, you can still use the funds in your HSA account for qualified medical expenses tax-free. This includes expenses for you, your spouse, and any dependents.

3. Close the Account and Withdraw the Funds:

• If you prefer, you have the option to close the HSA account and withdraw the remaining funds. Keep in mind that any non-qualified withdrawals may be subject to taxes and penalties.

4. Transfer the Funds to a New HSA:

• Another option is to transfer the funds from your existing HSA account to a new HSA. This can be done without incurring taxes or penalties, as long as it is a trustee-to-trustee transfer.

When you change jobs, your HSA account remains yours, and you have the flexibility to navigate your options as per your current needs, even if the funds cannot be rolled over.