what happens to my hsa if i change jobs

Did you know the first few months of every yr is the most common time for people to leave their jobs?

That means at that place's no ameliorate time than now to cover an important topic for anyone with a high-deductible health plan (HDHP) and a health savings account (HSA) who'due south recently moved on from a job—or who's thinking of making an employment change.

So, if you autumn into these categories, read on for some helpful tips on what happens with your HSA when yous leave your job. And even if yous're non planning on a career changeup at the moment, it'due south still a practiced idea to continue reading. Because if you have an HSA, information technology's better to know your options alee of time only in case you discover yourself in a situation where you lot need to move up or motion on for whatsoever reason.

Rest Easy – HSAs are Portable

From multiple taxation advantages and investment opportunities, to flexibility and convenience, HSAs provide many upsides. Ane of the most important HSA advantages pertaining to leaving a chore is an HSA's portability. Simply put, you ain your HSA and all the funds in it.

What that ways is your HSA remains with you no thing what, regardless of job changes, health insurance plan changes or even retirement.

But it'south not just account portability alone that gives you an edge. The contributions in your HSA will always remain available to use for qualified medical expenses in the aforementioned tax-advantaged way as the day you set your HSA up. And when you lot retire, you tin can even use the funds for non-medical expenses with no penalty.

Information technology's also important to note, if your employer made contributions to your HSA, those contributions are yours to keep besides. Your employer can't accept back any of their contributions—all the money in your HSA is yours to go on and use.

Roll On, Rollover

There'southward a mutual misconception that all tax-advantaged accounts accept sure windows (annually or otherwise) that their funds need to exist used within. When it comes to an HSA, that's not the case. Because HSAs let you to curl on with infinite rollover capabilities.

If you have an HSA, and even if you leave your job, you'll never be faced with a "use information technology or lose information technology" scenario when information technology comes to your HSA contributions. The same can't be said for many other tax-advantaged accounts like FSAs. But when it comes to HSAs, any funds left in your HSA at the end of the year or at the time you exit your job are able to be rolled over indefinitely with no penalties or charges.

Bottom line—if you leave your job or if your employment status changes, your HSA and all the funds within the account remain with you indefinitely.

Potential HSA Changes to Account for Subsequently Leaving Your Job

While you can rest easy knowing that leaving your job doesn't mean losing your HSA or your HSA contributions, there are some potential HSA changes you demand to exist enlightened of and potentially account for depending on what happens afterwards yous get out your job.

Kickoff and foremost, you demand to sympathize your HSA eligibility moving forrard.

While your business relationship and all the money inside information technology remains yours to use indefinitely for any HSA-qualified medical expenses, you won't be able to brand further contributions if you're no longer covered by an HSA-eligible health program. If yous demand a quick refresher on HSA eligibility, check out Bend's HSA Nuts resource. Only just think, without existence covered by an HSA-eligible health plan, you're no longer able to actively contribute to your HSA.

Also remember, if yous had an employer who contributed to your HSA, those contributions will no longer happen once you've left your job. That ways if you're not already employed by another employer that sponsors an HSA program and contributes to your business relationship, simply are withal able to maintain coverage through an HSA-eligible HDHP, you'll likely demand to adapt your contributions to account for the lack of employer contributions. Just remember, yous'll simply be able to keep to brand contributions to your account if you're able to maintain HSA-eligible HDHP coverage, through another employer or otherwise.

And if you take already switched over to another employer that offers an employer-sponsored HSA plan and makes HSA contributions, yous may want to transfer (ordinarily referred to as a rollover) your existing HSA funds into a new HSA through whichever HSA provider your new employer uses in society to take advantage of pretax payroll contributions and their employer contributions. If you do roll over your HSA funds into a new HSA through your new employer, you tin can then choose to close out your "old" HSA to consolidate and keep things elementary.

In this scenario, you tin also choose to exit your existing HSA open and still open up a new business relationship with your new employer to take advantage of those employer-sponsored HSA benefits while still keeping your existing HSA intact. There's no dominion against having multiple HSAs—the main point to empathise with having multiple HSAs is that you can't contribute more than than the maximum annual HSA contribution limit gear up past the IRS spread out across all your HSAs. Simply put, the full contribution amounts for all your HSAs combined CANNOT exceed the IRS maximum annual contribution limit specific to your state of affairs.

A quick refresher—here are the maximum annual HSA contribution limits fix by the IRS for 2022:

• $iii,550 for individual coverage
• $7,100 for family coverage
• Any HSA accountholder age 55 or older is eligible to utilize an additional almanac HSA catch-up contribution limit of $ane,000 to help grow their business relationship beyond the standard maximum almanac HSA contribution limit (i.eastward., $iv,550 for individuals, $viii,100 for families)

Since the publication of the blog, IRS has issued the contribution limits for 2022:

• $3,600 for private coverage
• $7,200 for family coverage
• Boosted almanac HSA grab-up contribution limit of $1,000 if age 55 or older.

Whether or not you're able to maintain active eligibility to contribute to your HSA, once you've left your job, you'll as well want to be sure you check with your HSA provider to come across if you'll be charged whatever fees that may have been previously paid for by your employer. Some HSA providers charge accountholders monthly maintenance or other fees when their employer is no longer there to comprehend those fees. With Curve HSA, at that place are no fees for individuals or families.

Your HSA, Your Choice

Changing jobs can exist stressful. But worrying about your HSA doesn't take to be. Now you know that your HSA can stay with you and that in that location's no deadline for you to use your HSA funds by fifty-fifty subsequently you've left your job.

You also learned that you're able to have multiple HSAs open without punishment. Then be sure to do your homework, since not all HSA providers are created equal.

Equally long as you're eligible to have an HSA, you tin can choose your HSA provider—so choose wisely. If yous don't have a Bend HSA, it's worth your while to find the Bend Difference. Bend provides you with the smartest, nearly advanced HSA on the market, loaded with innovative, user-friendly capabilities that work for y'all. Feature rich. No gimmicks. No surprises. Just a peachy HSA platform designed to make unlocking the full potential of your HSA simple and user-friendly.

Keep 2022 going potent. Savour your new career gamble. And brand the nearly of your HSA today and every day moving frontwards by rolling your existing HSA into a Bend HSA.