What To Do With An Old HSA Account?

If you have an old HSA account that you are no longer using, it's important to know your options on how to manage it effectively. Here are some practical steps you can take:

1. Consolidate Your HSA Accounts:

• Consider transferring the funds from your old HSA account to your current one. This streamlines your accounts and makes it easier to manage your healthcare expenses.

2. Keep Your Old HSA Account Open:

• If you have investments in your old HSA account, you may choose to keep it open to continue growing your funds tax-free.

3. Close Your Old HSA Account:

• If you no longer need the old HSA account, you can close it. Be aware of any closing fees or restrictions that may apply.

4. Use Up Remaining Funds:

• Before closing or transferring your old HSA account, make sure to use up any remaining funds for eligible healthcare expenses.

5. Review Your Investment Options:

• If you have investments in your old HSA account, evaluate their performance and consider reallocating them if needed.

If you find yourself with an old HSA account that you haven’t been using, it’s crucial to assess what options are available to you. Here are some suggestions to help manage your HSA effectively:

1. Consolidate Your HSA Accounts:

• Transferring funds from your old HSA to your new one can simplify your finances and help you keep track of your healthcare expenses efficiently.

2. Keep Your Old HSA Account Open:

• If your old HSA is invested, maintaining it could allow your contributions to grow tax-free, potentially benefiting your long-term health expenses.

3. Close Your Old HSA Account:

• If your old HSA account is no longer necessary, you can choose to close it—but be sure to check for any penalties or fees associated with the closure.

4. Use Up Remaining Funds:

• Before making any decisions, consider spending any leftover cash in your old HSA on eligible medical expenses to avoid losing those funds.

5. Review Your Investment Options:

• Take the time to analyze your current investments in your old HSA account; reallocating them might be wise if they aren't performing well.