Can I Transfer My Unused Money from My Old HSA to My New HSA Account?

One common question that arises when transitioning to a new Health Savings Account (HSA) is whether you can transfer your unused funds from your old HSA to the new account. The good news is that yes, you can transfer your unused balance from your old HSA to your new HSA account.

Here are some important points to know about transferring unused money from your old HSA to your new HSA account:

• You can roll over the funds from your old HSA to your new HSA without any tax implications or penalties, as long as the transfer is done correctly.
• It's essential to initiate a trustee-to-trustee transfer to ensure the funds move directly from one HSA to another, avoiding any tax consequences.
• Make sure to follow the specific rules set by the IRS regarding HSA rollovers to stay compliant and avoid any issues.
• Transferring your unused balance allows you to continue saving for future medical expenses in your new HSA account.
• Remember to keep records of the rollover transaction for your own records and for tax purposes.

By transferring your unused money from your old HSA to your new HSA account, you can maintain your savings and benefit from the tax advantages of an HSA.

When shifting from one Health Savings Account (HSA) to another, it's perfectly fine to move your leftover funds from your old HSA to your new one, ensuring your health savings keep growing.