Are HSAs Portable?
Health Savings Accounts (HSAs) are indeed portable, which means the funds and the account itself can be carried over from one job or insurance plan to another.
Understanding HSA Portability
Portability is one of the key features of HSAs. Once you establish an HSA, it belongs to you, not to your employer. This means that if you change jobs, switch health insurance plans, or decide to move to another state, your HSA is still available for you to use. You retain full control over the contributions, investments, and withdrawals associated with the account.
How to Maintain Portability
To ensure your HSA remains portable, it's essential to keep track of your account details. If you change jobs, simply inform your new employer about your existing HSA. They may offer payroll deductions or allow you to make contributions directly to your account. Always keep receipts and records of your HSA transactions for tax purposes.
Additional Considerations
While HSAs are portable, make sure you understand the investment options and fees associated with your HSA, as these can vary by provider. Some may also charge fees for transferring funds. Familiarizing yourself with your HSA provider's policies will help you navigate the account effectively during job transitions or changes in health insurance.