Currently, I have a High Deductible Health Plan (HDHP) with an HSA, but next year my company is moving to a PPO that doesn’t allow HSA contributions. I want to switch since, even with an FSA, it’s overall cheaper for our medical costs.
What happens to the money in my HSA? Can I still use it for medical expenses next year until the balance is gone, then close the account?
You can keep your HSA balance. If your current HSA starts charging fees, you could transfer the balance to a new HSA provider like Fidelity. Even if you’re not actively contributing, you can use it for medical expenses now or save it for future use, even in retirement. Some people use HSAs as a way to save for medical costs later in life.
Yes, your HSA is yours to keep. If you start seeing monthly fees, consider moving it to a provider like Fidelity. One idea is to invest the balance for the long term. HSAs grow tax-free, and you can use the funds for medical expenses any time in the future. There’s no deadline to spend the HSA balance, so you could reimburse yourself years later if you save receipts.
I’m still using my HSA from a job I left years ago. It’s handy for medical expenses down the road.
You keep the HSA for life. You won’t be able to make new contributions unless you go back to a high deductible plan, but you can use the funds for qualified medical expenses any time.
You can still use the HSA even with a PPO. You just won’t be able to add new funds unless you’re in a high deductible plan. So if you have medical expenses, go ahead and use the money.
I’m in the same situation, but with both an FSA and HSA through the same company. I have to spend my FSA balance first before I can use my HSA card, which is a bit inconvenient. Having separate account numbers would make it easier.