So my plan is to take $3500 (from taxable account) and put it into my HSA
Then convert an extra $3500 from my traditional IRA to my ROTH IRA.
My understanding is that then those 2 will cancel each other out (tax deduction for HSA vs. taxable income for conversion), so no tax cost to me and then I just converted $7000 from two taxable accounts to two non-taxable accounts.
That seems too good to be true, but the HSA has funny rules since you don't have to have earned income to contribute, so is there a flaw in my plan?
Then convert an extra $3500 from my traditional IRA to my ROTH IRA.
My understanding is that then those 2 will cancel each other out (tax deduction for HSA vs. taxable income for conversion), so no tax cost to me and then I just converted $7000 from two taxable accounts to two non-taxable accounts.
That seems too good to be true, but the HSA has funny rules since you don't have to have earned income to contribute, so is there a flaw in my plan?