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

We understand that changes in employment can be overwhelming, especially when it comes to your Health Savings Account (HSA). So, what exactly happens to your HSA account when you switch jobs and the amount cannot be rolled over? Let's dive into the details.

When you leave your current job, there are a few scenarios that could occur with your HSA:

• If your new employer offers an HSA, you can simply rollover the funds from your existing HSA into the new one.
• If your new employer does not offer an HSA, you can keep your existing HSA account and continue using it for qualified medical expenses.
• If you decide not to keep your HSA and your new employer does not offer one, you can withdraw the funds for non-qualified expenses. However, please note that these withdrawals may be subject to taxes and penalties.

It's essential to understand the options available to you and make an informed decision regarding your HSA account when changing jobs. By staying informed and planning ahead, you can ensure that your healthcare funds are utilized effectively.

Switching jobs can feel like a whirlwind, and your Health Savings Account (HSA) shouldn't add to the stress. When you change your job, your HSA can either move with you or stay put, depending on your new employer's offerings. It's crucial to evaluate your choices involving your HSA, especially when rollover isn't an option.