Questions and Answers

Rollover and transfer contributions from Archer Medical Savings Accounts (MSAs) and other HSAs to an HSA are permitted. They need not be in cash and are not subject to the annual contribution limits. An HSA owner may make only one rollover contribution to an HSA during a 12-month period and a rollover must occur within 60 days after the date of receipt of a distribution. There is no limit on the number of trustee-to-trustee transfers allowed during a year. Note that HSA custodians/trustees are not required to accept rollovers and transfers.

Rollovers from certain flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs) are also allowed, subject to the rules of IRS Notice 2007-22.

Under IRC 408(d)(9), an IRA owner may take a tax-free, once-in-a-lifetime traditional or Roth IRA distribution to make a regular, current-year HSA contribution. Although reported as an IRA distribution, the IRA owner may not have control of the assets during the transaction, much like a transfer. Publications 590, Individual Retirement Arrangements (IRAs), and 969, Health Savings Accounts and Other Tax-Favored Health Plans, provide additional details on Qualified HSA Funding Distributions.