HSA: A rollover contribution is not included in your income, is not deductible, and does not reduce your contribution limit. You can roll over amounts from other HSAs into the State HDHP's HSA. You do not have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA. Rollover contributions do not need to be in cash. You must roll over the amount within 60 days after the date of receipt. You can make only one rollover contribution to an HSA during a one-year period. 12 months must pass after receipt of one rollover before you may make another distribution from the same HSA to rollover.
Note: If you instruct the trustee of your HSA to transfer funds directly to HealthEquity for your State HDHP's HSA, the transfer is not considered a rollover. There is no limit on the number of these type of transfers. You do not need to include the amount transferred in income, deduct it as a contribution, or include it as a distribution on IRS Form 8889, line 12a.
IRA: IRS rules allow a one-time transfer of IRA assets to fund an HSA, subject to the contribution limits applicable to the year of the transfer and the individual must be otherwise eligible to open an HSA. Transfers are not taxable as IRA distributions. Amounts transferred into an HSA from an IRA are not deductible. IRS Publication IRS Publication 969 provides more information.
For further details, access HealthEquity's Transfer Request Form or contact HealthEquity at 866-346-5800.
