Closing a Group HSA
A group HSA is typically part of a benefits package offered by an employer.
To close your group HSA, submit the request your employer or benefits administrator.
However, we recommend that you convert your group HSA into an Individual HSA. This removes your HSA from the employer's group plan.
The account still belongs to you, and the money in it is yours, even after it is removed from your employer's group plan. You can use the remaining money for eligible medical expenses.
And, if you're covered by an HSA-eligible high-deductible health plan, you can keep contributing to the HSA.
Closing an Individual HSA
Individual HSAs are not associated with a group.
Avoiding taxes and fees
When you close an individual HSA, you need to decide what to do with any money remaining in the account. You can use the money for eligible medical expenses without tax or penalty. But if the money is used for any other reason, you will pay taxes and a penalty to the IRS.
We recommend keeping your account open and spending the rest of the money in it on eligible medical expenses.
Wait for all activity to end before closing your HSA
Avoid hassle and confusion by waiting until all pending reimbursement requests and deposits have been completed before closing your account.
Closing your account
To close your account, call Blue Cross and Blue Shield of Vermont customer support at 1-866-999-2605.