Can I Write a Check Directly from My Old HSA to My New One?

When it comes to transferring funds between Health Savings Accounts (HSAs), there are specific rules and processes to follow to ensure a smooth transition. One common question that many individuals have is whether they can write a check directly from their old HSA to their new one.

Unfortunately, you cannot simply write a check from one HSA to another as a direct transfer. However, there are alternative methods you can use to transfer funds between your old and new HSAs:

• Request a trustee-to-trustee transfer: Contact your current HSA provider and request a direct transfer of funds to your new HSA provider. This method ensures that the funds move seamlessly between accounts without any tax implications.
• Roll over the funds: You can also request a distribution from your old HSA and then roll over the funds into your new HSA within 60 days to avoid any tax penalties.
• Avoid withdrawing the funds: It's essential to avoid withdrawing the funds from your old HSA directly, as this could result in tax consequences and penalties if not deposited into the new account within the specified timeframe.

Transferring funds between HSAs is a straightforward process as long as you follow the guidelines set by the IRS to avoid any tax implications. By understanding the proper procedures for transferring funds, you can seamlessly move your HSA funds to a new account without any complications.

Transferring funds between Health Savings Accounts (HSAs) can initially seem confusing, especially when you're unsure whether you can write a check directly from your old HSA to your new one. Unfortunately, this isn't allowed; however, there are other effective ways to make that transition smoothly.