What Happens to Unused HSA Money If I Change Plan?

It's always smart to plan for the future, especially when it comes to your health and finances. Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. But what happens to the money in your HSA if you change your health plan?

If you switch to a new health plan, your HSA balance remains yours. The funds in your HSA are yours to keep, and they roll over year after year, unlike Flexible Spending Accounts (FSAs) that have a 'use it or lose it' rule. This makes HSAs a flexible and valuable tool for saving for future medical expenses.

Even if you no longer have an HSA-eligible health plan, you can still use the funds in your HSA for qualified medical expenses tax-free. You should keep track of your HSA contributions and expenses to ensure you're using the funds appropriately.

So, what happens to the money in your HSA if you change your health plan? In short, it stays with you, ready to be used for medical expenses whenever you need it.

Changing health plans can be daunting, but the good news is that your HSA funds remain intact. This means that regardless of the new plan you choose, your HSA balance can still help cover eligible medical expenses.