Timothy Sumer

Just once in your lifetime you are allowed to roll money from your IRA to your HSA, or health savings account. This is called a qualified HSA funding distribution, and this move can help you reduce your tax liability and let you tap retirement funds early. But there’s a few things you should know before you make the transfer: First, you must be eligible to contribute to an HSA to make the rollover. If you are not currently covered by a high deductible health plan, you can not do a rollover to your HSA. In addition to that you must remain in an HSA eligible health insurance plan for at least 12 months after making he distribution. If you switch part way through this 12 month testing period, you will be subject to additional taxes and penalties. Next, the Rollover amount you are able to do is capped at the annual contribution limit for your HSA. This amount varies depending on if you are on an individual or family plan. And, this rollover amount counts as your contribution. Y...