Money Matters
smetter04
member
HSA Transfer
DH had a HDHP & HSA through his previous employer that he left almost 3 years ago. I recently checked the HSA account and the quarterly fee is astronomical, so it needs to be transferred. Our local bank offers HSA accounts so we want to create an account there. Neither DH or I currently have a HDHP.
I did some research and found that rolling over an HSA is allowed once per year. Since there are so many rules surrounding eligibility for HSAs and usage of them, I'm wondering if any of you can think of anything I may be missing. The last thing I want to do is break any rules or flag the IRS. Thanks
I did some research and found that rolling over an HSA is allowed once per year. Since there are so many rules surrounding eligibility for HSAs and usage of them, I'm wondering if any of you can think of anything I may be missing. The last thing I want to do is break any rules or flag the IRS. Thanks
Re: HSA Transfer
is going to run into issues trying to open a new HSA to transfer the funds without currently being enrolled in an HDHP. One of the qualifications to open a new HSA is that you have to be enrolled in an HDHP. You don't need to be in an HDHP to spend down old funds. However, it may be different if you're transferring funds out of an old HSA. I work in insurance but have never seen this question come up so I'm curious to see if someone has done this or knows the rules.
I would think her bank should be able to answer this question fairly quickly and may even help her fill out the transfer forms if it can be done. I tried to do a lot of searching on it last night and couldn't find anything that directly addresses this, but it does appear to be possible.