What Happens to Your HSA Funds if You Quit?

Many people wonder what happens to their HSA funds if they quit their job. It's important to understand how Health Savings Accounts work and what options you have in such a situation.

When you quit your job, your HSA funds remain yours. They are not tied to your employment status, unlike other health benefits like Flexible Spending Accounts (FSAs).

Here's what you need to know about your HSA funds if you quit:

• You can continue to use your HSA funds for qualified medical expenses even after leaving your job.
• You can keep your HSA open and contribute to it if you have a high deductible health plan (HDHP) with another employer or through a private plan.
• If you no longer have an HDHP, you can still use your existing HSA funds for medical expenses, but you cannot make additional contributions until you have an HDHP again.
• Unused HSA funds roll over from year to year, so there's no need to worry about losing your balance when you quit.
• You can also use your HSA funds for non-medical expenses after the age of 65, although you will have to pay income tax on the amount withdrawn.

Overall, HSA funds are portable and belong to you, providing flexibility and long-term savings potential.

When you decide to quit your job, it's perfectly normal to wonder what will happen to your Health Savings Account (HSA) funds. The good news is that your HSA funds are yours to keep and are not dependent on your employment.