What Happens to Your HSA When You Leave a Company?

When you leave a company, you may wonder about what happens to your Health Savings Account (HSA) that you had through your employer. Here is what you need to know:

1. Ownership: Your HSA belongs to you, not your employer. It goes with you wherever you go, even if you change jobs or retire.

2. Options: When you leave a company, you have several options regarding your HSA:

• Keep it: You can keep your HSA and continue to use it for eligible medical expenses.
• Transfer it: You can transfer your HSA to a new HSA provider of your choice without tax implications.
• Close it: If you prefer, you can close your HSA, but any non-qualified withdrawals will be subject to taxes and penalties.

3. Contributions: Once you leave a company, you can no longer contribute to your HSA unless you have a high-deductible health plan (HDHP) through another employer or on your own.

4. Portability: HSAs are portable, meaning you can take it with you and keep using it to pay for qualified medical expenses even after leaving a job.

5. Access: You will still have access to your HSA funds, and you can use it for qualified medical expenses for yourself and your eligible dependents.

Overall, your HSA is yours to keep and manage even after you leave a company. It is a valuable financial tool that provides flexibility and tax advantages for healthcare expenses.

When you leave a job, it's important to understand the future of your Health Savings Account (HSA). What happens to it? The good news is that it’s yours to keep.