What Happens to Your HSA When You Leave Your Job?

When you leave your job, you may be wondering about what happens to your Health Savings Account (HSA) that was tied to your previous employer. An HSA is a valuable savings tool for healthcare expenses, offering tax benefits and flexibility in managing medical costs. Here's what you need to know about your HSA when changing jobs:

If you leave your job, your HSA is yours to keep. The account belongs to you, not your employer. You have the option to continue using the funds in your HSA for eligible medical expenses even after you leave the job.

Here are some key points to remember:

• Ownership: Your HSA is portable, meaning you can take it with you when you change jobs.
• Contributions: You can no longer contribute to your HSA through payroll deductions once you leave your job. However, you can still make contributions on your own, up to the annual limit set by the IRS.
• Investments: If your HSA offers investment options, you can continue to manage and grow your investments even after leaving your job.
• COBRA: If you elect COBRA continuation coverage, you can use your HSA to pay for qualified medical expenses while on COBRA.

When you leave your job, it’s important to know that your Health Savings Account (HSA) remains completely yours. Unlike some other employer-sponsored benefits, your HSA is portable, which means you can take it with you without losing any accumulated funds.