A person has $60,000 in his traditional IRA with a cost basis of 0. He has the right kind of health insurance. Can he do a one time transfer of the $60,000 to his HSA? That is, do the normal HSA contributions apply in this case?
No, you cannot do a transfer of $60,000 from an IRA to your HSA. The IRA to HSA rollover is limited to the remaining annual HSA contribution limit you have left for the year (excluding any other contributions, including employer contributions, already made).
In addition, if you live in California or New Jersey, you'll be "unsheltering" a tax-sheltered amount. California and New Jersey do not confirm to the Federal preferential treatment of HSAs and tax them currently. You'll pay taxes on your IRA distribution, and will pay current taxes on the HSA income on that money.
More details here.