Permalink Submitted by Alan - IRA critic on Tue, 2018-10-30 19:13
I think you are referring to the Schwab account for employer plans (PCRA) and a qualified HSA funding distribution. The funding distribution cannot be made from an employer plan including an active SEP or SIMPLE IRA account, so the transfer is limited to non employer funded IRA accounts. Since an HSA funding distribution from an IRA replaces the amount that could be contributed for the year to the HSA with a deduction, the funding distribution is often over hyped. However, if a person cannot afford to come up with new money for an HSA contribution, the transfer is of some value because an HSA has an advantage over a TIRA as the distributions from the HSA for qualified expenses will be tax free.
Permalink Submitted by Alan - IRA critic on Tue, 2018-10-30 19:13
I think you are referring to the Schwab account for employer plans (PCRA) and a qualified HSA funding distribution. The funding distribution cannot be made from an employer plan including an active SEP or SIMPLE IRA account, so the transfer is limited to non employer funded IRA accounts. Since an HSA funding distribution from an IRA replaces the amount that could be contributed for the year to the HSA with a deduction, the funding distribution is often over hyped. However, if a person cannot afford to come up with new money for an HSA contribution, the transfer is of some value because an HSA has an advantage over a TIRA as the distributions from the HSA for qualified expenses will be tax free.