What to Do with an Old HSA? Tips and Guidelines

As you navigate through the changes in life, you may find yourself with an old Health Savings Account (HSA) that you're not actively using. It's important to understand your options and make informed decisions about what to do with your old HSA.

Here are some practical tips and guidelines to help you manage your old HSA:

• Keep It Open: You can choose to keep your old HSA account open, even if you're not contributing to it anymore. This way, you can continue to use the funds for eligible medical expenses tax-free.
• Review Fees and Terms: Check if your old HSA account has any maintenance fees or minimum balance requirements. If the account is charging you fees that outweigh the benefits, consider transferring the funds to a different HSA provider.
• Consolidate with a New HSA: If you have another active HSA, you can consolidate your old HSA funds into the new account. This simplifies your finances and makes it easier to keep track of your healthcare expenses.
• Invest the Funds: Some HSA providers offer investment options for your HSA funds. If you're not planning to use the funds for medical expenses in the near future, consider investing them to potentially grow your savings over time.
• Understand Tax Implications: Be aware of the tax implications of different actions you take with your old HSA. Consult with a tax advisor if you're unsure about the tax consequences of closing, withdrawing, or transferring funds from your old HSA.

Remember, your HSA funds are yours to manage, and making informed decisions can help you maximize the benefits of your healthcare savings.

If you've got an old health savings account (HSA) gathering dust, it's time to evaluate your options to make the most out of it. Whether you're thinking about your healthcare needs or just looking to maximize those tax-free funds, there are several smart moves you can make.

Start by checking your HSA balance; knowing what you have can help you decide. Here are some choices worth considering:

• Keep your HSA open to allow the funds to grow tax-free over time.
• Consider using the available funds for qualified medical expenses that may arise in the future.
• Think about rolling the balance into a new HSA if you've changed accounts or jobs.
• Look into investment options; many HSAs offer a variety of investment choices that can increase your funds significantly.
• Gift any unused funds to a recognized medical charity to help others in need.
• While you can withdraw funds for non-medical expenses, keep in mind that this could lead to taxes and penalties.

Ultimately, it's all about finding the right fit for your unique situation. HSAs are a powerful way to save for healthcare costs—so make sure to put your funds to good use!