Permalink Submitted by Alan Spross on Tue, 2007-09-18 20:12
IF you are eligible for a distribution from the 403b, you could do that. However, note that the one time IRA to HSA transfer does not increase the amount you can put in your HSA for that year, so if you have the funds available from taxable funds, you could simply contribute them to the HSA and claim the deduction that you would not get with the IRA transfer.
You also have to be sure to maintain HSA eligiblity for at least 12 months after the transfer, if you elect to do that.
Permalink Submitted by Ronald Hudson on Tue, 2007-09-18 23:05
thanks for the response. Let me put another twist on it. suppose i am the spouse of the HSA plan participant. can i contribute a one time rollover from my IRA to the family HSA. I am also on the plan throught my spouse.
Permalink Submitted by Alan Spross on Wed, 2007-09-19 03:36
Yes. However, an HSA is still an individual account like an IRA, even though the HDHP may provide family coverage and be furnished by either spouse as primary insured. Either spouse that has an IRA could make the IRA transfer to the HSA, but the combined amount of the transfer cannot exceed the 5,650 upper limit for family coverage when each spouse is covered for the full 12 month period.
Permalink Submitted by Alan Spross on Tue, 2007-09-18 20:12
IF you are eligible for a distribution from the 403b, you could do that. However, note that the one time IRA to HSA transfer does not increase the amount you can put in your HSA for that year, so if you have the funds available from taxable funds, you could simply contribute them to the HSA and claim the deduction that you would not get with the IRA transfer.
You also have to be sure to maintain HSA eligiblity for at least 12 months after the transfer, if you elect to do that.
Permalink Submitted by Ronald Hudson on Tue, 2007-09-18 23:05
thanks for the response. Let me put another twist on it. suppose i am the spouse of the HSA plan participant. can i contribute a one time rollover from my IRA to the family HSA. I am also on the plan throught my spouse.
Permalink Submitted by Alan Spross on Wed, 2007-09-19 03:36
Yes. However, an HSA is still an individual account like an IRA, even though the HDHP may provide family coverage and be furnished by either spouse as primary insured. Either spouse that has an IRA could make the IRA transfer to the HSA, but the combined amount of the transfer cannot exceed the 5,650 upper limit for family coverage when each spouse is covered for the full 12 month period.