What to Do with an HSA from Previous Employer?

When you leave a job where you had a Health Savings Account (HSA), you may be wondering what to do with it. An HSA is a tax-advantaged account that allows you to save money for medical expenses. Here are some options for dealing with your HSA from a previous employer:

1. Keep the HSA with Your Previous Employer: Some employers allow former employees to keep their HSAs with the company even after they leave. You can continue to use the funds in the account for qualified medical expenses.

2. Roll Over the HSA to a New Employer: If your new employer offers an HSA-compatible health plan, you can transfer the funds from your old HSA to the new one. This allows you to keep saving for medical expenses with pre-tax dollars.

3. Transfer the HSA to an Individual HSA: You can also roll over the funds from your previous employer's HSA into an individual HSA. This gives you more control over the account and allows you to continue using the funds for medical expenses.

4. Use the HSA Funds: If you have qualified medical expenses, you can use the funds in your HSA to pay for them, even if you no longer work for the employer who sponsored the account.

Deciding what to do with an HSA from a previous employer depends on your individual circumstances and financial goals. Consider speaking with a financial advisor to help you make the best decision for your situation.

When you leave a job with a Health Savings Account (HSA), it’s essential to understand your options to make the most of your account. One option is to keep the HSA with your previous employer, as many companies allow former employees to retain their HSAs, enabling ongoing access to the funds for qualified medical expenses.