Moving savings plan funds around isn’t as hard as it looks. Once you’ve started an HSA account, you can move your funds to another provider. You can also transfer funds to an HSA from an IRA if you desire. Knowing how to transfer HSA funds puts you in the right place to take advantage of features that are offered by another provider such as seamless, fee-free transfers.

Establishing an HSA Rollover

The first thing you’ll need to do is identify your current HSA provider. This might be a bank or other financial institution. If your HSA is through your employer, then you can ask the benefits department to point you in the right direction. Once you’ve found your provider, you’ll simply reach out to them and ask for a trustee-to-trustee transfer. They’ll usually allow you to then provide the information that is required to do the transfer online, and this is the fastest and easiest way to get it done. If you would like to know about how to transfer HSA funds, visit this website.

Moving an HSA From One Employer to Another

When you change jobs, you can keep your current HSA account with you. However, you may prefer to take advantage of a better plan that your employer offers. In this case, you’ll follow the same steps as you would with a personal account.

Transferring Funds From an IRA

This type of transfer gets a little tricky, and you’ll want to make sure you are ready since this is a once-in-a-lifetime allowance. You’ll reach out to your IRA record keeper to set up this transfer, and it will follow many of the same steps as you take with normal accounts. However, you will also need to meet a Testing Period that involves maintaining a high-deductible health plan for at least 12 months that begins the month you start the transfer to avoid paying penalties.

The IRS limits official rollovers to only one in a 12-month period, and this involves your current provider sending you funds that you then have to deposit in your new HSA within 60 days. With trustee-to-trustee transfers the money goes directly to your new provider, and you can do this as often as you need. Make sure that your provider knows exactly how you want to transfer funds to a new HSA so that you can quickly begin taking advantage of features that help you build your savings.

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