IRA conversion to HSA

Submitted by Michael Mooney on Wed, 2017-07-05 14:04

I have a client that wants to convert money from his IRA to an HSA account. I’ve read online you can do this “one time” in your life.

Any advice on how to do this?

Thanks,

Mike



Submitted by Alan - IRA critic on Wed, 2017-07-05 18:17

This option replaces the amount client could otherwise contribute to his HSA for the year of the transfer. Therefore, the one time transfer only results in the HSA contribution being funded from client’s IRA rather than from client’s other money. There is also no deduction when a year’s HSA contribution is done by IRA transfer. The transfer is non taxable, but client does not get a deduction for an HSA contribution. For more detail, see p 6 of IRS Pub 969.

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