If you find yourself no longer HSA-eligible — perhaps because you switch health plans to one that is no longer a high-deductible health plan (HDHP), or you enroll in Medicare when you become eligible at age 65 — the only thing you “lose” is the ability to fund the account. Any of the money that is already in your HSA stays yours forever.

Using existing funds

You can keep using your HSA debit card for eligible expenses, as long as you have funds available in your HSA. You can also continue to use these funds to reimburse yourself for expenses you’ve paid out of pocket. Saving your receipts (such as through the HSA Store Expense Dashboard) continues to be important even if you are not currently funding your HSA.

Saving and investing existing funds

If your HSA has accumulated a substantial balance and you are no longer eligible for new contributions, instead of using that money, you can also consider this account an emergency fund for future medical expenses.

And if you haven’t yet, you can also explore investment options within the HSA to allow your existing funds to potentially grow over time, even if you aren't funding more.

Meeting eligibility later

If your circumstances change and you again become HSA-eligible, perhaps by switching employers to one that offers a HDHP, you can resume contributions to your HSA. This is a good reason to keep your HSA even while not currently eligible for contribution!