What Happens When You Leave a High Deductible Health Plan HSA?

Leaving a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) can raise questions and concerns about the future of your HSA. When you leave an HDHP for another health insurance plan, certain rules and considerations come into play:

1. Loss of HSA Eligibility: If you switch to a non-HDHP health plan, you can no longer contribute to your HSA as per IRS rules.

2. Still Use Your Existing HSA: Even if you're no longer eligible to contribute, you can still use the funds in your HSA for qualified medical expenses.

3. Tax Implications: Ensure you understand the tax implications of using HSA funds for non-qualified expenses.

4. Portability: Your HSA is portable, meaning you can keep it and continue using it with a new HDHP in the future.

5. Investment Options: Explore investment opportunities within your HSA to grow your savings for future healthcare costs.

6. Stay Informed: Keep up-to-date with HSA rules and regulations to make the most of your account.

7. Consult a Professional: If you have specific questions or concerns about your HSA, consider consulting a financial advisor or tax professional.

When you leave a High Deductible Health Plan (HDHP), it's important to understand the implications for your Health Savings Account (HSA). While switching to another health insurance plan can raise concerns, you can breathe easier knowing there are rules that govern what happens to your HSA.