Transferring HSA Account to New a HSA Account

[scottwpny]

I am in the process of transferring my current HSA account to a newly created Fidelity HSA account.

I am retired, on Medicare and over 65.

Is this process allowed without any penalties or taxes?

[dmertz · Accepted solution]

A trustee-to-trustee transfer of an HSA where the funds are never paid to you is not reportable.  However, if you instead receive a distribution from the original HSA and indirectly deposit it into the new HSA, this would be a distribution and rollover that would be  reportable on your 2024 tax return but would be nontaxable.  Such a distribution and rollover is permitted only if you have not done another distribution and rollover of an HSA within the one year period ending on the date of the withdrawal from the HSA.  Age and Medicare coverage have no bearing on the permissibility of a distribution and rollover of an HSA.

[scottwpny]

@dmertz  Thanks!