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Post by Savoir Faire-Demogague in NJ on Nov 20, 2012 13:45:27 GMT -5
Do any of you tax experts out there have any information or links to the IRS publications for doing a transfer off funds from an IRA or 401K to an HSA account.
My gf wants to do the "once in a lifetime" transfer, as she(and I) research there is always something that comes up.
There is info on IRS.Gov, but it is a very dry read...
Anything will be appreciated.
Thanks.
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Nov 20, 2012 14:17:22 GMT -5
dry read is kind.... let me see if I have any non dry read on the subject i can direct you to
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Post by Savoir Faire-Demogague in NJ on Nov 20, 2012 14:37:38 GMT -5
dry read is kind.... let me see if I have any non dry read on the subject i can direct you to Thanks much, I will check back later!!! |
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damnotagain
Well-Known Member
Joined: Oct 19, 2012 21:18:44 GMT -5
Posts: 1,211
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Post by damnotagain on Nov 20, 2012 14:42:26 GMT -5
" The maximum amount you can transfer is the maximum HSA contribution limit for the year!"
Hopefully both amounts are close enough.
IRS form 5329
Pub 969 goes with it.
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Post by Savoir Faire-Demogague in NJ on Nov 20, 2012 14:46:46 GMT -5
Thanks, I will check that form...
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Nov 21, 2012 5:53:17 GMT -5
This example from the IRS may be helpful to understand how it works "Example 1. Individual A, age 45, enrolls in family HDHP coverage on January 1, 2008, is otherwise an eligible individual (as defined in § 223(c)(1)) as of that date and through December 31, 2009. A’s maximum annual HSA contribution for 2008 is $5,800. A owns an IRA with a balance of $2,000. A direct trustee-to-trustee transfer of $2,000 is made from A’s IRA trustee to A’s HSA trustee on April 2, 2008. The $2,000 distribution is a qualified HSA funding distribution, and accordingly is not included in A’s gross income and is not subject to the additional tax under § 72(t). A’s testing period with respect to the qualified HSA funding distribution begins in April 2008 and ends on April 30, 2009. After the qualified HSA funding distribution of $2,000, $3,800 of A’s 2008 HSA maximum annual contribution remains." www.irs.gov/irb/2008-25_IRB/ar09.html (there are a number of other examples here... but the text in the document gets a bit technical, or dry as noted earlier (I agree) link to the pubs noted above www.irs.gov/publications/p969/index.html and www.irs.gov/uac/Form-5329,-Additional-Taxes-on-Qualified-Plans-(Including-IRAs)-and-Other-Tax-Favored-Accounts |
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