Can you use your HSA after leaving a job?

Yes. A health savings account belongs to you, not your employer. IRS Publication 969 describes an HSA as portable: it stays with you if you change employers or leave the workforce. You can keep using the balance for qualified medical expenses, which include over-the-counter medicines like lubricating eye drops. A health FSA is different, because it’s an employer’s plan, so check its rules before you leave.

Why an HSA stays with you

An HSA is a tax-exempt trust or custodial account held in your name at a bank, credit union or other trustee. Your employer may have picked the provider and sent payroll contributions into it, but the money in the account is yours from the moment it lands. IRS Publication 969 uses the word “portable” and says the account stays with you when you change jobs or stop working.

Practically, that means nothing about the balance disappears on your last day. The debit card keeps working unless the provider tells you otherwise, and the account keeps its investments and history. Some employers pay the monthly account fee while you work there and stop afterward, so the provider may start charging you directly. That’s a fee question, not an ownership question.

Can I still use my HSA for over-the-counter eye drops?

Yes, as long as the purchase is a qualified medical expense. Since the CARES Act in 2020, over-the-counter medicines count without a prescription, and the IRS lists over-the-counter medicine, “whether or not prescribed,” as medical care in Publication 969. Lubricating eye drops sold as an OTC drug with a Drug Facts label fall into that group. Our guide on why OTC eye drops count for HSA and FSA has the background.

Publication 969 adds one timing rule worth knowing: expenses incurred before you set up your HSA aren’t qualified. Anything you buy after the account was opened is fine, whether you still work at the job that opened it or not.

Using an HSA card after leaving your job

If your HSA debit card still works, you can use it at checkout like any card. If you’d rather pay another way and reimburse yourself later, that works too. Either way, a few habits keep tax time simple:

• Save the order confirmation email or your shipping email for each eye drop order; it shows the date, product and amount.
• Keep a simple folder or spreadsheet of HSA purchases, since the IRS expects you to be able to show distributions went to qualified expenses.
• Watch for a new card if your provider reissues accounts after you leave an employer.
• Look up past orders on our order lookup page if you lose an email.

Can I still contribute to my HSA after leaving a job?

Spending and contributing are separate rules. You can spend from the account regardless of your job. Contributions depend on being an “eligible individual,” which generally means being covered by a high-deductible health plan and not by certain other coverage. Lose that coverage when you leave, and contributions stop for the months you’re not eligible. Publication 969 explains that you can still contribute for the months you did qualify, up to the tax filing deadline. If you move to a new plan, check whether it’s HSA-eligible before adding money.

What happens to an FSA when you leave a job

A health flexible spending arrangement works differently. Publication 969 calls health FSAs “employer-established benefit plans,” usually funded by salary reduction agreements with the employer. Because the plan belongs to your employer, its rules decide what happens when you leave. Publication 969 also explains that FSAs are generally “use-it-or-lose-it,” with some plans allowing a limited carryover or a grace period, but not both.

What we couldn’t confirm from the IRS publication is exactly how each plan handles departing employees. Some end eligibility on your last day; some offer continuation coverage. Before you leave, ask HR or your FSA administrator these questions:

• What’s the last date I can buy something and have it count?
• How long do I have to submit receipts after leaving?
• Does the plan offer continuation coverage, and what would it cost?
• Is there a carryover or grace period, and does it apply after separation?

If there’s money left and the deadline is close, stocking up on OTC items you already use, like eye drops, is a common choice. Just buy what you’ll use before the bottles reach their expiration date.

Ordering Quell with HSA or FSA funds

Quell is an over-the-counter lubricating eye drop. Its label’s Uses line reads: For use as a protectant against further irritation or to relieve dryness of the eye. Each bottle holds .33 fl oz (10 mL), and the directions are: Apply 1 drop 3 times per day in each eye. Checkout works as a guest, shipping is $10.00, and orders of 3 or more bottles ship free. Unopened bottles can be refunded within 30 days of delivery without being sent back, which helps if you overestimate.

We can’t tell you whether a particular card will be accepted at checkout, because that depends on your HSA provider. For general eligibility questions, our main HSA and FSA guide covers the basics, and your plan administrator has the final word on your account.

Before you leave: a short checklist

• Log in to your HSA provider and confirm your contact details are personal, not work, email and phone.
• Download recent statements while you still have any employer portal access.
• Ask HR when payroll contributions stop and whether the employer covers account fees afterward.
• Use or plan your FSA balance by the plan’s deadline.
• Keep receipts for every medical purchase, including OTC drops, in one place.