What Happens When I Stop HSA?

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What happens to your HSA after stopping contributions

When you stop contributing to your HSA (Health Savings Account), there are a few things to keep in mind regarding your account:

• Your HSA remains yours - even if you change jobs or healthcare plans.
• You can still use the funds in your HSA to pay for qualified medical expenses tax-free.
• If you no longer have an HSA-eligible health insurance plan, you can't continue contributing to the HSA, but you can still use the existing funds.
• There are no penalties for leaving the funds in your HSA, and they continue to grow tax-free.
• If you withdraw funds for non-medical expenses before age 65, you'll face income tax and a 20% penalty.
• After age 65, you can withdraw funds for any reason without penalty, but income tax is due if not used for qualified medical expenses.

Stopping your contributions to your HSA does not mean losing your account; your HSA is your personal asset that remains intact even if you change jobs or insurance plans.