CARD Q074
A worker leaves an employer after contributing to an HSA. What generally happens to the existing HSA balance?
- Only employer contributions return to the employer
- It remains the worker’s account balance
- The balance must be transferred to the new employer’s plan
- Unused funds are forfeited at the end of that plan year
It remains the worker’s account balance
An HSA is individually owned and portable. Making new contributions still requires eligibility under current HSA rules.
Why each choice is right or wrong
A. Only employer contributions return to the employer
Incorrect. Employer HSA contributions generally belong to the account owner once contributed.
B. It remains the worker’s account balance
Correct. An HSA is individually owned and portable. Making new contributions still requires eligibility under current HSA rules.
C. The balance must be transferred to the new employer’s plan
Incorrect. The account is portable; a new employer plan does not automatically receive the balance.
D. Unused funds are forfeited at the end of that plan year
Incorrect. That describes a forfeiture concept associated with some other arrangements, not HSA ownership.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.