IRA to HSA transfer

[Deleted]

Does anyone know anything about the rule about being able to transfer from an IRA to an HSA once? Anyone done it? Drawbacks?

I was thinking one of the scariest parts of the HDHP is not having the money up front for a large max OOP, but if you can preload with IRA money...

[hoops902]

I won't say I'm an expert, but I know you can do it one time as you noted, the max amount is the same as the HSA limit in the year you're doing it plus $1k if you're over 55.  You have to currently be eligible for an HSA and you have to continue your eligibility for a year after you do the transfer.  You can't move money between spousal accounts (wife IRA to husband HSA, vice versa).

[Deleted]

Nov 21, 2019 14:55:20 GMT -5 hoops902 said:

I won't say I'm an expert, but I know you can do it one time as you noted, the max amount is the same as the HSA limit in the year you're doing it plus $1k if you're over 55.  You have to currently be eligible for an HSA and you have to continue your eligibility for a year after you do the transfer.  You can't move money between spousal accounts (wife IRA to husband HSA, vice versa).

What I'm reading is there is no limit to the amount of the transfer?  I'm understanding I can just plunk 10K (or whatever amount?) in my HSA next year from my IRA and have access to funds that I wouldn't normally and it would be tax-free for medical expenses? 

www.hsabank.com/hsabank/members/transfer-rollover-hsa-funds

The IRS allows customers to complete a once-per-lifetime transfer from an IRA account to an HSA. Below are a few of the details to know when considering this transaction.

A transfer of an IRA to an HSA can occur once per person, per lifetime

The transferring IRA and HSA must be owned by the same individual (no such thing as a joint IRA or HSA)

This transfer does count toward the annual contribution limit

Can be transferred from a Traditional or Roth IRA without further restrictions

Can be transferred from an SEP or Simple IRA as long as the IRA is no longer considered "ongoing" by IRS definition

IRA funds are non-transferable to spouse or partner HSA accounts

[Deleted]

Never mind.  I bolded my answer!  I thought it said "Does Not". 

Ok.  Never mind.  It's useless to me. 

[hoops902]

Yeah, it's more of a one-time contribution opportunity than it is an opportunity to beef it up even higher.