0

Can HSA assets that have been rolled over within the past 12 months be transferred without tax implications?

  1. Request a rollover distribution from Custodian A
  2. Deposit funds distributed by Custodian A to Custodian B as a rollover
  3. Within 12 months, request a custodian-custodian transfer from Custodian B to Custodian C

As I understand it, you may make a rollover distribution of the assets only once per rolling 12 month period, but custodian-custodian transfers do not generate a taxable event and can be completed both instead of or in addition to a rollover with no further tax implications, regardless of when the transfer takes place.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.