Can I Keep My Hsa If I Change Jobs
Posted 2021-02-15February 15, 2021
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Have yous recently changed employers? Or are you considering making a change? Fortunately, when you participate in a wellness savings account (HSA) through your employer, your HSA stays with you. There are plenty of myths about HSAs , but today permit's tackle what really happens to your HSA when yous change employers.
You have options
HSA transfer
If your new employer offers an HSA, you tin transfer the administration of your business relationship to your new employer'southward HSA administrator. If you select this option, your new employer will provide you with a transfer request grade that authorizes a new HSA custodian to take over the administration of your business relationship. There are no IRS fees or penalties for this pick.
HSA rollover
You can too take a rollover arroyo, which is a process past which yous receive a check for your HSA funds. You take 60 days after receiving these funds to move them into some other HSA. Merely watch out: If you exceed the sixty-twenty-four hours window, those funds volition be considered a distribution and taxed — and you'll exist assessed a hefty twenty% penalty.
Go along the HSA open
Or, you lot can simply keep the HSA you already take. There are no IRS fees or penalties for doing so. If you do proceed your electric current HSA, you tin withdraw funds for eligible expenses at whatsoever time. Even so, yous can only contribute to your HSA if y'all're still enrolled in a high-deductible health plan. You can as well invest some or all of the funds!
(Wondering how much you should contribute to your account in the first place? We've got you covered .)
Your HSA is your account
The bottom line is that your HSA is yours . This astonishing savings tool doesn't vest to your employer, so you get to take it with you wherever you get, fifty-fifty if your new employer doesn't offer HSAs or provide HSA contributions.
Still accept questions?
Selecting benefits tin be overwhelming, only information technology's more than important than ever to know what you're signing up for. Download our Open up Enrollment Crook Canvas ! And to learn more than most HSAs, check out our Benefits Buzz podcast episode.
The information in this weblog mail is for educational purposes only. Information technology is not legal or tax communication. For legal or tax advice, you should consult your own counsel.
Source: https://www.wexinc.com/insights/blog/health/health-savings-accounts-hsa/hsa-when-you-change-jobs/
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