I recently changed companies, and the new employer does not have a HDHP. I have just under $2,000 in my HSA, but without any medical expenses to spend it on, it's just sitting there, slowly being eaten away by the new monthly administration fee...

If I bring it above $2,000, I then have the ability to invest it, though I don't know if I want to put additional money into an account that I won't be using.

What should I do?

  • I answered below with what I ended up using some of my HSA funds for (dental work). Accepted another answer to give some rep, however.
    – Bigbio2002
    Jul 6, 2015 at 14:13
  • I have the opposite problem... no HDHP policies are available this year (!?) and I have additional expenses I want to reimburse myself in the future for that went beyond the contribution limit this year, but I don't have any way of contributing the money to do so. At least my HSA balance is zero though, so no fees...
    – user12515
    Jan 15, 2017 at 16:15

4 Answers 4


Without more information about what tax bracket you are in, I cannot make a recommendation about what your best option is, but here are a few things to consider:

  • You can still contribute to the HSA until April 15th of next year if you have not contributed your allowable maximum (for the current year that is the annual maximum / 12 * the number of months you were covered by a high-deductible plan).
  • Contributions to the HSA are pre-tax and will reduce your tax liability, if you are in a higher tax bracket, the money saved in taxes may outweigh the maintenance fee.
  • If the invested funds are returning better than inflation and the maintenance fees, it does not hurt you to leave the funds in place.
  • Though you may not currently have a high deductible plan available, the health insurance market is moving in that direction and you may find yourself back in a high deductible plan before too long. (I would wait at least until the next open enrollment to make my final decision.) The deductible that qualifies is currently $1250 single or $2500 family
  • If there are any qualified expenses, you can use those funds without incurring further tax and maintenance fees. (For example if you could benefit from LASIK, that would be one way to empty the account.

With only $2000 in the account, I wouldn't worry about investing it. Instead, I would roll this over into a new HSA account with a different provider. Find a provider that doesn't charge ongoing fees, perhaps with a local credit union or bank. Although you won't be able to add money to it, you can withdraw as you have eligible medical expenses, until it is gone.

  • I would look into doing this ASAP. I know my local credit union offers an HSA account with no fees and a 2.5% interest rate. And as Ben states, you can continue to draw on it for eligible expenses, you just can't add to it moving forward.
    – Matt
    Sep 23, 2014 at 14:17
  • It seems to be incredibly difficult to find an HSA provider that doesn't charge monthly fees, at least with a balance below a certain minimum.
    – Bigbio2002
    Jul 6, 2015 at 14:02

If you do not presently have an HSA-compatible insurance plan, you cannot legally add money to your HSA. You can still withdraw, but you can't add.

So basically your choice are to let the money sit there and be nibbled away by the monthly fees, to withdraw it anyway and pay the tax penalty, or to spend it on whatever medical expenses you do have.

I have no idea what your expenses are, how good your present insurance is and how often you and any dependents see a doctor or get prescriptions. If you used it for ALL uncovered expenses, how long would it take to use it up?

  • 3
    That is not technically true. If the OP did not contribute the allowable amount (based on the number of months he was covered by the HSA) he can contribute more up to that allowable amount until April 15 of the following year. Sep 12, 2014 at 22:33
  • 3
    He also has the option to close the account and put the money into one which doesn't charge fees to prevent the nibbling
    – VBCPP
    Sep 12, 2014 at 23:45
  • @NathanL True. He has until April 15 of the year following the year in which he was eligible to make deposits to the HSA. But the amount he can contribute depends on how many months he was eligible. If he wants to do that, he'd have to get the IRS instruction book and check the formulas.
    – Jay
    Sep 13, 2014 at 2:00

I suppose I should update this with what I ended up using some of my HSA funds for... dental work!

I'm in my mid-20's and it came time for my wisdom teeth to be removed. While my dental insurance covered the procedure, I had to pay out of pocket for the fancy "conscious sedation" ($325 to make me nice and relaxed, versus plain Novocaine and nervously holding my mouth open, while I get my teeth ripped out). Luckily, I had my HSA to cover it.

Also, I may need braces... :\ Most dental insurance won't cover the cost of orthodontics 100%, so that's another costly, common, and easily-overlooked expense a younger person may have that spare HSA funds can cover.

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