Can I Transfer Money Between HSA Accounts? - Explained

Transferring money between HSA accounts is a common question among individuals managing their health savings accounts. The answer is both yes and no, depending on the type of transfer you want to make.

There are two ways to move funds between HSA accounts:

• Trustee-to-Trustee Transfer: This is a direct transfer between HSA providers, where the funds move electronically from one account to another without you ever touching the money. It's tax-free and unlimited in frequency.
• Rollover: This involves withdrawing the funds from one HSA account and then depositing them into another HSA account within 60 days. You're only allowed one rollover per year, and it's up to you to ensure the funds are deposited into the new account on time to avoid tax implications.

When considering a transfer between HSA accounts, keep these key points in mind:

• Ensure you follow the IRS guidelines for transfers to avoid penalties.
• Verify any transfer fees that may apply from your HSA providers.
• Keep accurate records of your transfers for tax reporting purposes.

While you can transfer money between HSA accounts, it's essential to understand the rules and implications of each transfer method to make informed decisions about managing your health savings.




Transferring funds between HSA accounts can significantly enhance your financial planning, especially if you find a better interest rate or investment options.