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jcghiker22
New Member

I'm retired with a dwindling balance in my HSA account. Can I transfer IRA money to the HSA even if I no longer have earned Income?

 
3 Replies
dmertz
Level 15

I'm retired with a dwindling balance in my HSA account. Can I transfer IRA money to the HSA even if I no longer have earned Income?

Yes, as long as you are eligible to make an HSA contribution for the year (2021 in the case of a transfer in 2021)  and you have not previously done such a transfer.  Having earned income is not a requirement for contributing to an HSA.

 

Such a transfer usually only makes sense if you have no other money from which to make an HSA contribution.

Opus 17
Level 15

I'm retired with a dwindling balance in my HSA account. Can I transfer IRA money to the HSA even if I no longer have earned Income?

You still must be covered by a qualifying HDHP and have no other disqualifying medical coverage, such as Medicare.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
DaveF1006
Expert Alumni

I'm retired with a dwindling balance in my HSA account. Can I transfer IRA money to the HSA even if I no longer have earned Income?

Yes, You can make the tax-free rollover from your IRA to an HSA only once in your lifetime and the amount is limited to the maximum HSA contribution for the year minus any contributions you've already made for the year. I found this information in the following link.

 

Contribution limits for HSA in 2020 are:

  • $3550 for individual plan
  • $7100 for Family Coverage
  • For 55 and Over you can contribute up to $1000 as a catch up contribution.

To report this in Turbo Tax go to:

  1. Wages and income
  2. Retirement Plans and Social Security Show More

  3. IRA, 401(k), Pension Plan Withdrawals (1099-R) Start
  4. Add 1099R
  5. After entering your 1099R. you will reach a screen that says:
  6. Tell us if any of these uncommon situations apply
  7. pick the option that says I moved some or all of this money to my HSA as a one-time contribution
  8. Remember the contribution is limited to your contribution limit for this year minus any contributions you may have already made.

 

 

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