Can I contribute to my HSA after I leave my job?
Asked by: Cory Treutel | Last update: November 12, 2025Score: 4.9/5 (69 votes)
Can I contribute to an HSA after I quit my job?
First up, just so you're aware, you can contribute to your HSA, even an HSA offered by your previous employer, as long as you continue to meet eligibility requirements. One of these requirements is to be covered by an eligible High-Deductible Health Plan (HDHP).
Can I contribute to my HSA if I am not working?
Any eligible individual can contribute to an HSA. For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute.
What happens to your HSA when you switch jobs?
An HSA is 100% yours regardless of job change. You could likely even keep that same account. Though many employers will pay for things like account fees for current employees, you'd become responsible for those once you leave.
Can I contribute to my HSA after I retire?
You can contribute to a health savings account after you retire, so long as you are not enrolled in Medicare. If you are enrolled in Medicare you cannot contribute to a health savings account, but there are other ways of saving for expected and unexpected healthcare costs.
What happens to my HSA if I quit my job?
What is the 6 month rule for HSA contributions?
If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty. If you require counseling around HSAs, consult a tax professional.
Can I use my HSA to pay health insurance premiums if I retire early?
If you pay for your medical expenses out of pocket now, you'll have more saved in your HSA account to help pay for medical expenses once you retire. If you retire before age 65 and you aren't yet eligible for Medicare, you can use money in your HSA to pay your medical coverage premiums.
Can I still contribute to my HSA if I change plans?
What happens to my HSA if I change health plans, terminate employment, or retire? The money in the HSA belongs to you. You can continue to use the money in your HSA to pay for qualified medical expenses but you can no longer make contributions to the account unless you are enrolled in another HSA-eligible HDHP.
Can I cash out my HSA?
Yes, you can withdraw funds from your HSA at any time. But please keep in mind that if you use your HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.
Can I still contribute to an old HSA account?
Making an additional contribution to your previous year's Health Savings Account (HSA) could help reduce the amount of federal tax you owe. More good news: You can make contributions1 beyond the end of the calendar year, all the way up until the tax filing deadline of the following year.
What disqualifies you from contributing to an HSA?
You can't contribute to an HSA if you have Medicare coverage, or a plan that pays its share of a covered service without you having to pay deductibles or copayments first (called “first dollar coverage”).
What is the downside of an HSA?
Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).
How much should I have in my HSA at retirement?
The amount of money you should have in your HSA during retirement depends on your healthcare needs and circumstances. According to the Fidelity Retiree Health Care Cost Estimate, a single person who is age 65 in 2023 should aim to have about $157,000 saved (after tax) for healthcare expenses during retirement.
Can HSA be used after termination?
This means that you can continue to use your HSA for qualified expenses even after your termination. Your ability to continue contributing to your HSA will be dependent on whether you choose to enroll in an HSA qualified health insurance plan either through your new employer or through an individual policy.
Can I use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
What happens to HSA if you don't use it?
Unspent HSA funds roll over from year to year. You can hold and add to the tax-free savings to pay for medical care later. HSAs may earn interest that can't be taxed. You generally can't use HSA funds to pay premiums.
At what point should I stop contributing to my HSA?
If you are retiring at the age of 65 ½ or older, to avoid potential tax issues, you want to STOP YOUR HSA CONTRIBUTIONS so that you have 6 months of NO contributions before you FILE FOR MEDICARE.
Can I transfer money from my HSA to my checking account?
Online Transfers – On HSA Bank's member website, you can reimburse yourself for out-of-pocket expenses by making a one-time or reoccurring online transfer from your HSA to your personal checking or savings account.
Is HSA better than 401k?
Comparing HSAs and 401(k)s
The triple-tax-free aspect of an HSA makes it better for tax management than a 401(k). However, since HSA withdrawals can only be used for healthcare costs, the 401(k) is a more flexible retirement savings tool. The fact that an HSA has no RMD gives it more flexibility than a 401(k).
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
Can I use my HSA card for groceries?
No, you can't use your Flexible Spending Account (FSA) or Health Savings Account (HSA) for straight food purchases like meat, produce and dairy. But you can use them for some nutrition-related products and services. To review, tax-advantaged accounts have regulatory restrictions on eligible products and services.
Can I close my HSA and take the money?
But that does not mean you should close your HSA!
But if it's not an earth-shattering emergency, you're probably better off keeping your HSA. If you close your HSA and withdraw all the money, you're going to have to pay income tax on the withdrawal, plus a 20% additional tax if you're under age 65.
What is the HSA account loophole?
The ultimate loophole available to almost everyone under the age of 65 in our tax code is the Health Savings Account (HSA). It is the only account you can contribute to and deduct the contribution and then withdraw the money tax free. Think about that, a tax deduction going in and no taxes going out.
At what age can you no longer contribute to an HSA?
If you work beyond age 65 and defer Medicare, however, you will need to stop contributing to your HSA six months prior to receiving Social Security. Once you begin drawing Social Security after your full retirement age, you are required to have Medicare coverage and can no longer contribute to an HSA.
Can I use HSA for gym membership?
Gym memberships. While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.