HSA to IRA
IRA to HSA Rollover Strategy – Benefit; allows account owners who have an IRA to execute a one-time tax-free conversion into an Health Savings Account (HSA) and let those funds compound to pay for medical expenses in the future
Introduced through the 2006 Health Opportunity Patient Recovery
Allows a one-time rollover from a traditional IRA to a HSA
Small rule that if someone has “self-only” coverage at the first day of a month after a rollover, they are allowed to execute a rollover a second time
To fully qualify the person must be in the same situation for 12 months, so generally not worth the risk of going without coverage for 12 months
