Will I be Taxed for Switching HSA Providers?
You can direct your new HSA provider to contact your current provider and have them hash out the transfer without any check being cut to you. Because the money moves directly from one HSA to another, and doesn’t involve you, there’s no risk of this turning into a taxable event.
Can I move my money from one HSA to another?
The IRS allows each HSA account holder to “roll over” their funds to a new HSA provider every 12 months and maintain the tax-advantaged status of the HSA. If you request a “rollover,” the HSA custodian will send the funds to you via check or transfer to your personal bank account (not your HSA).
What happens to HSA if you switch?
A: You own your account, so you keep your HSA, even if you change health insurance plans or jobs. We can continue to administer your HSA account if you choose.
How do I avoid HSA transfer fees?
How to avoid HSA fees
- Choose low fee plans – this involves doing a bit of research before you open your HSA. …
- Switch HSA custodians – if you already have a Health Savings Account, you can still compare plans and switch to a new custodian if you find a better deal.
Can I move my health savings account?
If your HSA money is invested, you may be able to do an in-kind transfer into a self-directed HSA, which allows your HSA provider to transfer both your cash balance and your investments to Fidelity. You may need a separate transfer request for each.
Can you have 2 HSA accounts?
As long as you have an HSA-eligible health plan, there’s no limit on how many HSAs you can have. As far as the IRS is concerned, the only limit is how much money you can contribute to your HSAs each year. You can contribute it all to one HSA, or spread it out across two or more accounts.
What do I do with my HSA after I quit my job?
If the person leaves their job, the HSA (and any money in it) goes with the employee. They are free to continue using the money for medical expenses and/or move it to another HSA custodian.
What happens to my HSA when I no longer have a HDHP?
Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used.