Closing an Optum Bank HSA account requires you to withdraw or transfer your balance, then submit a formal closure request to Optum

Optum Bank does not have a single "close account" button. Instead, you move through two separate steps: first, you decide what happens to the money in the account (you can withdraw it, transfer it to another HSA, or leave it invested), and second, you notify Optum in writing that you want the account closed. The entire process typically takes two to four weeks from the time Optum receives your written request.

You can close your account at any time during the year. There is no penalty for closing an Optum HSA, and you keep any money that remains in the account — it does not revert to Optum or your employer. The main thing to plan for is making sure you have access to your funds after closure and that you understand the tax implications if you withdraw money for non-medical expenses.

Key Takeaways

  • You must decide what to do with your account balance before Optum will close the account — withdraw the money, transfer it to another HSA, or leave it invested until you decide.
  • Optum requires a written closure request, either by mail, fax, or through your online account portal if that option is available.
  • After you close the account, you will receive a final statement and a Form 1099-SA if you took any distributions during the tax year.
  • If you have automatic deposits from your employer or payroll, you must stop those before closing the account or contact Optum to halt them.
  • Money in an Optum HSA remains yours after closure — the account closing does not affect your ability to use those funds for may have access to medical expenses.

Decide what happens to your account balance

Before you contact Optum to close the account, you need to know what you want to do with the money inside it. You have three main options: withdraw it all, transfer it to another HSA held at a different bank or provider, or leave the balance invested in Optum's investment options while the account winds down.

If you are withdrawing the money, you can request a check mailed to you or an electronic transfer to your personal bank account. Withdrawals for non-medical expenses are subject to income tax plus a 20% penalty if you are under 65 — this penalty does not explore after age 65, though income tax still does. Withdrawals for may have access to medical expenses (copays, deductibles, prescriptions, dental work, vision care, and many other costs) are tax-free and penalty-free at any age.

If you want to transfer the balance to another HSA, you will need the name and account number of the receiving bank or provider. Optum can do a direct trustee-to-trustee transfer, which avoids any tax consequences. This is the cleanest option if you are moving your HSA to a different provider and want to keep the money sheltered from taxes.

Submit a written closure request to Optum

Optum requires a written request to close your account — a phone call alone will not do it. You have several ways to submit this request: by mail, by fax, or through your online account portal if Optum offers that feature for your account type.

The fastest method is usually your online account portal. Log in, look for account settings or account management, and search for a "close account" or "request closure" option. If that is not available, you can fax or mail a written request. Your request should include your full name, account number, the date you want the account closed, and confirmation of what you have done with the balance (withdrawn, transferred, or left invested).

Mail your request to the address listed on your Optum statements or on the back of your HSA debit card. Fax numbers are also printed on your statements. Include a copy of your ID if you are mailing the request. Optum typically acknowledges receipt within five to seven business days and completes the closure within two to four weeks.

Stop employer contributions before closing

If your employer is making automatic deposits into your Optum HSA — either through payroll deduction or periodic contributions — you must stop those before you close the account. If deposits continue after closure, they may be rejected or sent back to your employer, which can create confusion at tax time.

Contact your employer's benefits or payroll department and ask them to stop HSA contributions to your Optum account. Give them at least one pay period's notice so the change takes effect before your closure request is processed. You can also contact Optum directly and ask them to flag your account to reject incoming contributions, though your employer is ultimately responsible for stopping them on their end.

What happens after your account closes

Once Optum processes your closure request, you will receive a final account statement showing all activity through the closure date. If you took any distributions (withdrawals) during the tax year, Optum will send you a Form 1099-SA, which reports those distributions to the IRS. You will need this form when you file your taxes.

If you transferred your balance to another HSA, that receiving bank will send you a confirmation and a new account statement. Your new provider becomes responsible for issuing any tax forms related to the transferred balance. If you withdrew the money, keep records of what you spent it on in case the IRS asks — receipts for medical expenses are your proof that the withdrawal was tax-free.

After closure, you can no longer add money to the Optum account, but you can still use any remaining balance for may have access to medical expenses. The money does not expire. If you have a debit card linked to the account, it will stop working once the account is closed, so plan to use up any remaining balance or request a check before that happens.

If you want to reopen the account later

Closing an Optum HSA does not prevent you from opening a new HSA with Optum in the future. However, you can only have one HSA open at a time (across all providers combined), so you cannot reopen an old account while another HSA is active elsewhere. If you close your Optum account and later want to return to Optum, you would open a new account rather than reopening the old one.

The IRS limits HSA contributions to a set amount each year — for 2024, that is $4,150 for individual coverage and $8,300 for family coverage, though these amounts change annually. If you close an account mid-year and then open a new one with a different provider, your total contributions across both accounts for that year cannot exceed the annual limit. Keep track of what you contributed to the closed account so you do not over-contribute when you open the new one.

Frequently Asked Questions

Can I close my Optum HSA if I still have an active high-deductible health plan?

Yes. Your HSA and your health plan are separate. You can close the HSA account at any time, regardless of whether your health plan is still active. However, if you close the HSA and later want to open a new one, you must still be enrolled in a high-deductible health plan to do so.

What if I have pending medical claims or reimbursements when I close the account?

Contact Optum before submitting your closure request and ask how they handle pending claims. Some providers will process claims against a closed account if the service date was before closure. Others may require you to wait until claims are settled. Getting clarity first prevents your closure from being delayed.

Do I lose my HSA debit card when I close the account?

Yes. Your Optum HSA debit card will stop working once the account is closed, usually within a few days of the closure being processed. If you have a balance remaining, request a check or electronic transfer before closure so you can access the money.

Will closing my Optum HSA affect my credit score?

No. Closing an HSA is not reported to credit bureaus and does not affect your credit score. HSAs are savings and investment accounts, not credit accounts, so closure has no credit impact.

What if Optum lost my closure request or says they never received it?

If you mailed or faxed your request, send it again and ask for a fax confirmation or use certified mail for proof of delivery. If you submitted it through the online portal, take a screenshot showing the submission. Keep records of all communication with Optum. If the account remains open after 30 days, contact Optum's customer service and escalate the issue.