What Happens to Your HSA if You Leave Your Employer or Retire?

We recently received a question from an account holder and we thought it would be beneficial to post the answer for anyone else who may be wondering the same thing.

“What happens to my HSA if I leave my employer or retire?”

Here’s our answer: First, the money in your Health Savings Account (HSA) is yours to keep. You can continue to use it for qualified health expenses, and your account will remain open until you choose to close it.

If you remain enrolled in a high deductible health plan (HDHP), either through a new employer, through your former employer’s plan via COBRA, or through an individually-purchased insurance policy, then you will still be eligible to contribute to your HSA. However, if you have no coverage, or if you enroll in a health plan with a low deductible, then you will no longer be eligible to contribute to your HSA.

Lastly, you should note that most employers cover the monthly or annual cost of their employees’ HSAs. You should check with your HSA provider to determine whether you will start to be charged any fees once you are no longer associated with your former employer.

To see answers for other HSA-related questions that we’ve answered on our blog, check out our Health Savings Account (HSA) Expert Blog Series. If you have any questions, please feel free to contact our support team by phone at (866) 384-8549 or by email at

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