What Happens to Your HSA When You Quit Your Job?

When you quit your job, you may be wondering what happens to your Health Savings Account (HSA). An HSA is a valuable financial tool that allows you to save and pay for qualified medical expenses tax-free.

So, what happens to your HSA when you leave your job?

Here are some important points to consider:

• If you have an HSA through your employer, the account is yours to keep, even after you quit. You are the owner of the funds in the HSA, and it goes with you wherever you go.
• You can continue to use the funds in your HSA to pay for qualified medical expenses, such as doctor visits, prescriptions, and more.
• If you start a new job with a different health insurance plan, you can still use your HSA for out-of-pocket medical expenses.
• You cannot contribute to your HSA unless you are enrolled in a high-deductible health plan (HDHP). If your new employer offers an HDHP, you can continue to contribute to your HSA to save for future medical expenses.
• It's crucial to keep track of your HSA contributions and distributions for tax purposes. Make sure to retain all relevant documentation to avoid any tax implications.
• If you decide to close your HSA, you can withdraw the remaining funds, but be aware of any potential taxes or penalties that may apply, especially if the money is not used for qualified medical expenses.

Overall, your HSA remains intact when you quit your job, giving you flexibility and control over your healthcare expenses.

When you decide to quit your job, it's natural to feel uncertain about your financial and healthcare options, including your Health Savings Account (HSA). The great news is that your HSA is yours to keep, no matter where your career takes you.