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Rules for HSAs when leaving a high deductible health plan (HDHP)
Rules for HSAs when leaving a high deductible health plan (HDHP)

If you're no longer on an HDHP, you can't contribute to a health savings account but may continue paying for qualified medical expenses.

Updated over 7 months ago

If you are no longer covered under a high-deductible health plan, you might wonder about the impact on your HSA. We've got answers here.

Can I make contributions to my HSA?

No. To be eligible to make contributions to an HSA, you must be covered under an HSA-eligible HDHP on the first day of the month. If you are

To calculate your contribution limit for the tax year, visit Last Month and Prorated Limits.

Source: IRS notice 2004-2 Q&A 2 through Q&A 7

Can I use my HSA funds?

Yes! HSA usage is not defined by eligibility to fund an HSA. While you can no longer contribute to your HSA if you don't have an HSA-qualified health insurance plan, you may continue investing and paying for qualified medical expenses with your HSA funds. HSA eligibility does not hinder this HSA benefit.

An HSA is a lifetime savings account always there for health expenses.

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