Closing your HSA
We hope you never want to close your account, since the money in your HSA is yours to keep and potentially grow, tax-free, for future medical expenses.
Why you should keep your Optum Bank HSA
Consider the following benefits of keeping your account open before you decide:
- You don't have to close your account if you switch jobs.
- If your new employer offers an HSA, you can keep and continue to contribute to your Optum Bank account instead of opening a new one.
- If you no longer have a high-deductible health plan, you can use money you've saved in your Optum Bank HSA for medical expenses now and in the future – you just can't make additional contributions.
- You can continue to invest and grow your balance through investments,* you just can’t do further contributions.
- Most people spend 401k or other funds (post tax) on medical expenses when they retire. Saving your HSA funds for medical expenses in retirement will help you avoid the "tax hit" on your other retirement accounts.
- HSA funds used for anything other than qualified medical expenses are subject to regular income tax plus an additional 20% penalty.
- However, if you save your HSA funds until after retirement, you can avoid the non-medical spend penalty.
- We have done away with unnecessary bank fees associated with your health savings account (HSA). Click here to learn more about what fees there are, including the cost to transfer your HSA to a different bank.
Still want to close your account?
INVESTING WITH YOUR HSA
If you're keeping your account open, consider investing with your HSA funds. Optum Bank offers several mutual fund options for its investment accounts.
View standard mutual fund options