What Happens to Your HSA Account When You Change Employers?

Changing employers can bring about many changes, and one question that often arises is what happens to your HSA account when you make this transition. In the case of a Health Savings Account (HSA), your account belongs to you, not your employer. This means that when you change jobs, your HSA stays with you, and you have several options regarding its management.

Here are some key points to consider:

• If you're transitioning to a new employer who also offers an HSA plan, you can simply keep using the same HSA account. You can continue making contributions and using the funds for qualified medical expenses.
• If your new employer does not offer an HSA plan, you can still keep your existing HSA account open. You can no longer contribute through payroll deductions, but you can make contributions on your own and enjoy the tax benefits that come with an HSA.
• Another option is to transfer your HSA funds to a new HSA provider. This process is called a trustee-to-trustee transfer and allows you to move your funds without incurring any tax liabilities. Be sure to follow the specific guidelines provided by both HSA providers to ensure a smooth transfer.
• Alternatively, you can leave your HSA account as is and continue to use the funds for qualified medical expenses. There is no time limit on using the money in your HSA, so you can let it grow and accumulate over time, even if you change jobs multiple times.

It's important to note that while your HSA account stays with you when you change employers, you may no longer be eligible to contribute to the account if you switch to a non-HDHP (High Deductible Health Plan) offered by your new employer. In such cases, you can still use the existing funds for medical expenses and enjoy the tax advantages of an HSA.

When you change jobs, it's vital to know that your Health Savings Account (HSA) is entirely yours and doesn't get left behind. You can protect your savings and continue to make the most of its benefits no matter where you go.