Health Savings Accounts
Can I transfer money from my Individual Retirement Account (IRA) into my HSA?
Yes. Effective January 1, 2007, you can make a direct trustee-to-trustee transfer from your IRA to an HSA. This transfer is limited to the applicable annual HSA maximum contribution amount and is not tax deductible. The transfer is not subject to tax or penalty. The amount you transfer will reduce the amount that you could have otherwise contributed to an HSA for the year.
Once the transfer is made you must remain an HSA eligible individual (i.e., enrolled in a qualified HDHP) for 12 months following the month in which the transfer occurred, or the transfer amount will be taxable and subject to a 10% penalty. An exception to the taxation and penalty is provided in cases where the individual became ineligible due to death or disability. This transfer is generally limited to once in an individual’s lifetime. There is, however, an exception where an eligible individual goes from individual to family coverage in the taxable year in which the initial IRA to HSA transfer occurs.
View additional questions:
- What is a Health Savings Account?
- How do I qualify to open an HSA?
- When can I contribute to an HSA?
- Can I still participate in my employer's Health Care Flexible Spending Account (HCFSA) Plan if I am contributing to an HSA?
- How much can I contribute to my HSA?
- Can money be rolled over from My Health Flexible Spending Account or Healthcare Reimbursement Account into My HSA?
- Can I transfer money from my Individual Retirement Account (IRA) into my HSA?
- Who can contribute to my HSA?
- What is the tax treatment of an HSA contribution?
- What can I use my HSA money for?
- What if I withdraw money from my HSA and don't use it for qualified medical expenses?
- Are contributions and distributions on my HSA reported to the IRS?