How do life-changing events (divorce, death, employment status, new insurance) influence my HSA?
The transfer of an individual's interest in a health savings account (HSA) to that individual's spouse or former spouse under a divorce or separation will not be considered a taxable transfer. The recipient's spouse or former spouse may continue to avoid taxation on the account as long as it is maintained as an HSA.
The tax treatment of an HSA after the death of the account holder depends on whether a spouse or non-spouse is designated as beneficiary of the account.
New Health Plan (that is not HDHP)
An HSA is an individually owned account. If you are no longer participating in an HDHP, you cannot make contributions to your HSA, but you can make withdrawals.
An HSA is an individually owned account. If your new employer does not offer a HDHP, you cannot make contributions to your HSA, but can request withdrawals. If you leave your current employer, but keep your HSA open with Discovery Benefits, there may be maintenance fees assessed to your account.
If you have any questions, please contact Participant Services at 866-451-3399 or send us a message.
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