What Happens to Your HSA Account if You Are Terminated?

Health Savings Accounts (HSAs) are valuable tools for managing healthcare expenses while saving on taxes. But what happens to your HSA account if you are terminated from your job?

When you have an HSA account through your employer and you are terminated, the HSA account remains yours to keep. Here's what you need to know:

• If you are terminated, you can still use the funds in your HSA account for qualified medical expenses, even if you no longer have high-deductible health insurance coverage.
• You can continue to make contributions to your HSA account on your own, as long as you are still eligible according to IRS guidelines.
• If you have funds remaining in your HSA account after termination, those funds are yours to keep and use for future healthcare expenses.
• If you find a new job with another employer offering an HSA, you can continue contributing to a new HSA account but remember that the annual contribution limits apply to the total contributions across all your HSA accounts for the year.

It's essential to understand your options and rights regarding your HSA account if you are terminated to make the most of this valuable healthcare savings tool.

Health Savings Accounts (HSAs) are not just beneficial while you're employed; they remain an asset even if you're terminated from your job. Here's crucial information about your HSA status.

After termination, your HSA funds are still available to cover qualified medical expenses. Your access to these funds doesn’t vanish just because your employment does.

• Rest assured, you do not lose the money in your HSA account; it’s still yours.
• You can independently contribute to your HSA if you meet the eligibility criteria set by the IRS.
• Funds in your HSA account can be utilized for future medical expenses, regardless of your current employment status.
• Should you secure a new job with HSA eligibility, contributions limit still applies across all HSAs you own, so plan accordingly.