One time IRA to HSA transfer
Has anyone used the allowed once in a lifetime transfer from an IRA to a HSA? How did it work for you? (I searched the forums for HSA info, but didn't really see anything on this aspect.)
My MegaCorp is offering a HSA qualified HDHP next year. Unfortunately, they are not offering the HSA itself, and HSA contributions from me will be after tax, and therefore I cannot get the FICA avoidance on my contributions. Also, I can't really swing making a max HSA contribution without reducing my 401k or Roth contributions (already nearly max'ed out). So I am considering funding the HSA initially with this IRA to HSA transfer. My HDHP will be a family plan, so I would transfer $6550 plus a $1000 over-55 catch-up.
I am wondering if DW would be allowed to make her own once in a lifetime transfer to her own HSA at some time in the future. We expect that she will work for a couple of years after my ER, and our health insurance would be through her employer during that time.
My intent is to use the HSA primarily as a backdoor IRA to sort-of Roth conversion for post-retirement health expenses, and don't anticipate using it for current health expenses (except maybe for a big emergency).
How can you tell when a cat is retired?