Does My Transfer from One HSA Account to Another Count as an Additional Contribution?

Transferring funds from one HSA account to another does not count as an additional contribution. The transfer is simply moving money from one account to another without impacting your total annual contribution limit.

When transferring funds between HSAs, it is important to ensure that the transfer is done directly from one custodian to another to avoid any tax implications. If the funds are withdrawn and then deposited into the new HSA, it can be considered as a rollover which is subject to strict IRS rules.

Additionally, transferring funds between HSAs can be beneficial if you are changing HSA providers or consolidating accounts. It allows you to have better control and management of your healthcare savings while maintaining the tax advantages that come with an HSA.

When you transfer funds from one HSA account to another, it's crucial to note that this does not count as an additional contribution. A transfer merely shifts your money from one account to another without affecting your annual contribution limit.