There are several qualifications to have a health savings account. While you might meet them now, your circumstances might be different later. Solutions for health savings account broker are plentiful, but what happens if your insurance changes? If you need solutions for health savings account broker, visit this website.

Understanding HSA Qualifications

Before we get into what happens when your insurance situation changes, let's talk about the qualifications you have to meet to contribute to an HSA. The most crucial element of an HSA is your insurance. You must have an eligible high deductible health plan (HDHP).

Furthermore, you can't be dependent on someone else's insurance. You mustn't have any other health coverage in some cases, either.

Those are the baseline qualifications to contribute to an HSA. However, that doesn't mean that you can't own one.

What You Can Do When You're Not HSA-Eligible

The biggest draw of an HSA is that you can contribute an annual sum of pre-tax money. The account can grow and turn into an impressive nest egg for qualifying medical expenses with careful investments.

If your insurance changes and you're no longer HSA-eligible, you cannot contribute to your HSA. However, it's still there and ready for use. Your money doesn't go anywhere, and you're free to withdraw it tax-free for medical expenses. The only difference is that you can't add more money to the account.

Should You Withdraw Your HSA?

Many people toy with the idea of withdrawing their HSA funds and closing the account entirely. But, you might reconsider.

While you can use the funds for medical expenses, non-medical withdrawals will cost you. You'll have to pay taxes on the money you take out. If you're under 65 years old, there's also a 20 percent penalty tax.

Most financial experts recommend keeping your HSA even if you can't contribute. Of course, you're free to withdraw in dire situations. But moving to a different provider or saving it for medical expenses is the better choice.

Solutions for health savings account broker can help you plan for long-term savings and make the right decision for any insurance or life changes.

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