What to Do with HSA After Leaving a Job?

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What happens to your HSA

Leaving a job can bring many changes, including what to do with your Health Savings Account (HSA). Here are some important things to consider:

Once you leave your job, the HSA account still belongs to you. It is portable, meaning you can take it with you and continue using it for qualified medical expenses.

Ways to use or move your HSA

Here are some options for what to do with your HSA after leaving a job:

• Keep the HSA: You can keep the account and use the funds for eligible medical expenses. There is no time limit on when you can use the money.
• Use the funds for non-medical expenses: If you are over 65, you can withdraw the funds for non-medical expenses without penalty, though you will pay income tax.
• Roll over the HSA: You can roll over the funds into another HSA account if you have one with a new employer or a personal HSA.
• Continue contributing: If you are enrolled in a high-deductible health plan with a new employer, you can continue contributing to your HSA.
• Review fees and investment options: Check the fees associated with your HSA and assess the investment options to make sure they align with your financial goals.

After leaving a job, many people wonder what to do with their HSA. The good news is that your Health Savings Account is yours to keep, giving you several paths to consider.

Firstly, you can simply maintain your existing HSA and continue using it for eligible medical expenses, allowing your funds to sit until you need them.

Secondly, if you're over 65, feel free to withdraw funds for non-medical expenses too—just keep in mind that you'll face income tax on these amounts.

You may also choose to roll your HSA into another account with your new employer or a personal HSA you've established, ensuring your health savings remain intact.

Continue contributions and review options

It's essential to understand your options and choose the best path for your individual circumstances when it comes to managing your HSA after leaving a job.

Furthermore, should you find yourself enrolling in a high-deductible health plan with a new job, you can resume contributions to your HSA and keep enjoying the benefits it provides.

Finally, don’t forget to examine any fees tied to your HSA and consider investment options that align with your future financial needs—a little research can go a long way toward maximizing your health savings.