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Financial Learning Center


Health Savings Accounts

Are Rollovers Permitted?

Unused balances in an HSA can accumulate and build from year to year. There is no "use it or lose it" provision as is the case with Flexible Savings Plans. These accounts are portable, and may be used by individuals who move from job to job.

Rollover contributions from Archer Medical Savings Accounts and other HSAs are permitted and are not subject to annual contribution limits. See the section How Much Can Be Contributed to an HSA. Only one rollover contribution may be made during a one-year period, and the amount must be contributed to the HSA within 60 days in order to be exempt from income tax and the additional 20% tax that applies to nonqualified distributions. However, there is no limit on the number of trustee-to-trustee transfers allowed in a year.

In addition, a one-time direct rollover of a health FSA or an HRA can now be made to an HSA. However, these rollovers are limited to the FSA or HRA account balance as of the rollover date or the account balance as of September 21, 2006, whichever is less. This provision is effective for transfers made on or after December 20, 2006, but before January 1, 2012.

And, effective for tax years beginning after December 31, 2006, eligible individuals can roll over funds directly from an IRA to an HSA once during their lifetimes. The contribution must be made in a direct trustee-to-trustee transfer.

IMPORTANT NOTE: The contribution cannot exceed the HSA contribution limit for that year. However, if a rollover is made during a month in which you have individual coverage as of the first day of the month, an additional rollover may be made during a later month within the year in which you have family coverage. This provision does not apply to Simplified Employee Pensions (SEPs) or to SIMPLE retirement accounts.

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Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window).  UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


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