HSA #HealthSavingsAccount #SavingsAccount #PersonalFinance
What can I do with my HSA if I don’t want it anymore?
If you find yourself in a situation where you have an Health Savings Account (HSA) from a previous employer and you no longer want to keep it, there are a few options available to you. It’s important to understand the rules and regulations surrounding HSAs to make an informed decision.
Rolling Over Your HSA Balance
One option you have is to roll over your HSA balance to a different HSA provider. This allows you to maintain the tax-advantaged status of the funds while moving them to a different financial institution that may offer more favorable terms and conditions.
Using the HSA Funds
You can also choose to use the funds in your HSA for qualified medical expenses. This option might not be ideal if you don’t want to incur any fees by dipping below the minimum balance required to waive monthly fees, but it is an option to consider if you have eligible expenses to cover.
Closing the Account
If you decide that you no longer want to keep your HSA and don’t want to use the funds for medical expenses, you may choose to close the account. However, it’s important to be aware of any penalties or fees associated with closing the account prematurely.
Seeking Professional Advice
If you’re unsure about the best course of action for your HSA, it might be beneficial to seek advice from a financial advisor or tax professional. They can help you understand the implications of different choices and guide you towards the option that aligns with your financial goals.
Final Thoughts
In conclusion, there are several options available to you if you no longer want to keep your HSA. Whether you choose to roll over the balance, use the funds for qualified expenses, or close the account, it’s important to consider the consequences of each decision and make the choice that is most beneficial for your financial situation. 💰
Remember, HSAs are powerful tools for saving for medical expenses, so it’s important to understand how to make the most of them.
Roll it over to Fidelity HSA.
* https://thefinancebuff.com/best-hsa-provider-for-investing-hsa-money.html
I don’t know how much it is, but you are willing to spend hundreds or thousands of dollars to avoid a monthly fee?
You were contributing after-tax dollars to an HSA? That’s even a thing?
HSA is another type of tax shelter account for me. Eventually (I don’t remember the age requirement just google it) you can withdraw from it to use on anything, tax free, not just medical expenses. That’s why I contribute to max each year. Of course my HSA account allow me buy mutual funds. If yours doesn’t then it probably doesn’t help you much.
Were you still covered by a qualifying health plan (and only that plan) when you made the latest contributions? If not, you are going to have a problem due to that. You might need to ask them to return those excess contributions to you if you didn’t qualify to make them. Contact whoever runs the HSA to do that.
For the rest of the money, you can take it out but will have to pay income tax and a 20% penalty on it. A better option is probably to roll it over to a different HSA provider who doesn’t charge fees, and then use the way it was intended.
Lively HSA does not have a monthly fee for any size balance, it’s easy to do a rollover. [www.livelyme.com](http://www.livelyme.com).
For the post tax funds you contributed, you can reconcile this when you file your tax return so that they are basically pre tax. However, you should only be contributing if you are currently enrolled in a high deductible health plan.
You can roll it over to a no fee account elsewhere. Just make sure they have decent investment options.
Once I retired I moved my HSA to Fidelity from Bank of America (who my employer used). I chose Fidelity since I had other accounts there and their HSA has no fees and a lot of different investment options. I’ve been contributing by transferring funds since I’m still on a high deductible plan.
Let it grow tax free and take the money out later (I never took any money from my account out to pay medical expenses but will start doing so as part of my retirement plan). Or start reimbursing yourself for medical expenses from the account.
You can
* spend “HSA” on scheme-approved purchases,
* on anything you want if you’re 65/older,
* move “HSA” to a no-fee scheme operator if you’re not amenable to paying the present scheme-operator to be that,
* turn “HSA” over to Wall St. for the possibility of speculative gain,
* sit back and watch “HSA” lose retail health bill paying ability at the rate of retail health bill inflation, or any combo of the above.
That’s what you can do with “HSA.”
>I don’t want it tied up on this account. Idk if contributing those after-tax dollars was even a good idea
You achieved whatever you achieved in ordinary, personal income tax avoidance/deferment.
I’m retired. I had a company-sponsoredHSA with about $8k that I rolled to Fidelity (we have all our retirement assets there.) i was able to grow it to $10k and now invest so that it generates about $80 per month. We use it for copays and prescriptions, also some dental procedures last month. Tax free money for medical expenses accessible with a debit card. Love it, wish I could put more money in.