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What happens to my health savings account (HSA) if I switch jobs?

You are the owner of your HSA, which means you can take it with you when you leave your current job. Here are some important points to consider.
  • If your new employer offers an HSA that you like better than your current account, you can roll the money in your old HSA into your new employer's plan.
  • You can maintain your current HSA even if it was sponsored by your former employer, as long as you elect to retain your high deductible health plan (HDHP) under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a law that gives you the right to stay on your current health plan after you leave your job; you may even pay the COBRA premiums from your HSA.
  • If your HSA was fully funded for the year and you leave the HDHP during the year, then you will have to withdraw some of the contribution from the account and pay income tax on your excess contributions and on any earnings of the excess contribution. There is no penalty fee on excess contributions.
  • If you no longer are enrolled in an HDHP, you are not eligible to make contributions to your HSA, but you may still make withdrawals for qualified medical expenses. You can use your HSA funds to pay for eligible medical expenses tax free for as long as there is money in the account.
For information related to your specific HSA, review your plan documents.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.