The short answer to your questions are:
1. Yes, you can still contribute to the HSA even though you are not able to contribute via payroll deduction, as long as you still have a qualifying high deductible health plan (HDHP.)
2. Yes, you can take a distribution from the account to pay a qualifying medical expense, and that distribution will be tax free.
3. Yes, there is still a tax benefit to putting money into the HSA if you have income from other sources to fund your account - you will be able to report those contributions on your tax return when you file (the TurboTax interview questions ask you specifically about if you made any contributions OTHER than the ones via payroll deduction - for most people this answer is no. In your situation, you will say yes, and report the amount you contributed directly to the HSA plan.)
Job losses complicate life - but the good news is that your employment status does NOT impact your ability to own or withdraw from an HSA. An HSA is a portable benefit - you own the account, and the money that is stored there. As long as you take the funds out of the HSA to pay qualifying medical expenses, the withdrawal will be a tax free distribution.
You did leave out one detail that is relevant to the situation, so I did make the following assumption:
* You are still eligible to contribute to your HSA because you are maintaining your qualifying high deductible health plan (HDHP) through either an employer continuation of coverage or by paying COBRA premiums to keep the insurance. *
Clarissa
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
