The IRS allows customers to complete a once-per lifetime transfer from an IRA account to an HSA

The IRS allows customers to complete a once-per lifetime transfer from an IRA account to an HSA

When Transferring Funds From an IRA to an HSA

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