|
Transferring HSA money to a new HSA account
06-25-2014, 07:32 PM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
|
Transferring HSA money to a new HSA account
I found a small town bank within driving distance that pays significantly higher interest than I am currently getting. They don't seem to know too much about HSA and I don't want to get involved in multiple trips there. Has anyone ever just wrote a check from the funded HSA account for the full account balance and just deposited it into the other account, and then closed the other account later? Just trying to skip all the wiring paperwork. I would like to hand it all over and this years amount at the same time. Any tax trip ups to be aware of so it's not considered a taxable distribution? Based on my phone call, I am sure they won't know.
Sent from my iPad using Tapatalk
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-25-2014, 07:55 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
|
I thought a bank or credit union had to be a designated HSA custodian to manage HSA funds. Your statement "They don't seem to know too much about HSA..." makes me wonder if they are actually a custodian bank. You should be able to determine if they are using this link: Consumer Home
__________________
Numbers is hard
|
|
|
Transferring HSA money to a new HSA account
06-25-2014, 08:05 PM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
|
Transferring HSA money to a new HSA account
Quote:
Originally Posted by REWahoo
I thought a bank or credit union had to be a designated HSA custodian to manage HSA funds. Your statement "They don't seem to know too much about HSA..." makes me wonder if they are actually a custodian bank. You should be able to determine if they are using this link: Consumer Home
|
They weren't in your link, but they were in another one I found. Their website had HSA accounts listed and when I called they verified their interest rate. You have to come in person though as they will not set them up online. She did say I need to bring my drivers license to verify who I am. She sounded ok until I said I wanted to transfer funds also. She said She didn't think it would be a problem getting the transfer. But I had to talk to 2 people before I could talk to a person who knew anything about them. I'm afraid I will show up and be there on a day when a low wattage person is there so I want to make it easy. Just deposit this in my account and let's get the interest flowing!
Sent from my iPad using Tapatalk
|
|
|
06-25-2014, 09:52 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 3,221
|
Quote:
Originally Posted by Mulligan
Has anyone ever just wrote a check from the funded HSA account for the full account balance and just deposited it into the other account, and then closed the other account later?
|
I've had two HSA custodians and neither offered check writing as an option. When I decided to open a new HSA account the old HSA account holder had me fill out a HSA account closing form then mailed me a check for the balance.
|
|
|
06-26-2014, 05:33 AM
|
#5
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,518
|
The warnings about the custodian should be taken seriously. My first choice ended badly.
If you do choose to use the new bank, the transfer of existing funds needs to be kept separate from depositing new funds. It's like an IRA. You get your check, your current bank will issue a 1099-SA, you need to deposit the same amount in the new bank using a "transfer/rollover request form". You have 60 days from the date of the check. If they don't have a specific transfer / rollover form, walk away.
|
|
|
06-26-2014, 05:39 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,931
|
The new HSA account can do the transfer for you from another HSA. If they don't know about HSA - don't attempt to open such an account.
__________________
Retired since summer 1999.
|
|
|
06-26-2014, 05:54 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by audreyh1
If they don't know about HSA - don't attempt to open such an account.
|
+1
If they aren't familiar with how to do this the right way, run away -- because if they screw it up you could have significant tax problems on your hands.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
06-26-2014, 03:03 PM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
|
I will head the advise. I will be up in area anyways soon. I will ask about their transfer procedures. I think there is just one specific person knowledgable about the process, so I will need to make sure I hook up with that person. The way they talked anyways, I think they will want to pass me on to her like a hot potato anyways.
Sent from my iPad using Tapatalk
|
|
|
06-26-2014, 10:34 PM
|
#9
|
Recycles dryer sheets
Join Date: Dec 2008
Posts: 299
|
Quote:
Originally Posted by Mulligan
Has anyone ever just wrote a check from the funded HSA account for the full account balance and just deposited it into the other account, and then closed the other account later?
|
Yes. The receiving account needs to recognize it as a rollover contribution. You usually fill out a form. You can only do a rollover like this once per rolling 1-year period.
|
|
|
06-27-2014, 08:25 AM
|
#10
|
Recycles dryer sheets
Join Date: Jan 2008
Posts: 393
|
I also have done this by writing a check (two different times years apart)and making sure receiving credit union or bank marked it as a rollover contribution.
|
|
|
06-27-2014, 03:17 PM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
|
Quote:
Originally Posted by thefinancebuff
Yes. The receiving account needs to recognize it as a rollover contribution. You usually fill out a form. You can only do a rollover like this once per rolling 1-year period.
|
I got the idea to do it from this article. Is this by chance your website? I enjoy reading it.
http://thefinancebuff.com/how-to-rol...nsfer-fee.html
Sent from my iPad using Tapatalk
|
|
|
06-27-2014, 03:34 PM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
|
Quote:
Originally Posted by Dave J
I also have done this by writing a check (two different times years apart)and making sure receiving credit union or bank marked it as a rollover contribution.
|
Dave, did you clean the account out? That was my thought and then call and tell them to cancel my account after I got the cash out.
Sent from my iPad using Tapatalk
|
|
|
06-27-2014, 03:37 PM
|
#13
|
Recycles dryer sheets
Join Date: Jan 2008
Posts: 393
|
Quote:
Originally Posted by Mulligan
Dave, did you clean the account out? That was my thought and then call and tell them to cancel my account after I got the cash out.
Sent from my iPad using Tapatalk
|
Yes, I did write a check for entire balance. I called my old bank to tell them my intention was closing the account so I did not get any low balance, ect. fees.
|
|
|
06-27-2014, 08:26 PM
|
#14
|
Recycles dryer sheets
Join Date: Dec 2008
Posts: 299
|
Quote:
Originally Posted by Mulligan
|
Yes it is. Thank you.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|