How To Rollover an HSA On Your Own and Avoid Trustee Transfer Fee

The HSA provider my employer has chosen is not very good. The interest is very low if I leave the money in cash. Investment options are very expensive, without index funds. I still use it because employer contributions are exempt from Social Security and Medicare taxes.

the money comes out once a year and I put it in my favorite HSA account to get better interest rates and better investment opportunities. Watch how I did it. Hopefully, this will be useful for others who want to do the same. If you are looking for a better HSA, consult the best HSA provider to invest HSA money.

I. subscribed to my employer’s HSA provider website.

 I have requested a withdrawal from my personal checking account. Leave a few dollars if you don’t want to close your account. If you no longer want this account, you can resume everything and make a call to close the account when the recovery is complete.

2. I sent a personal check with a renewal fee form to my preferred HSA provider.

If you can’t find it on your website, ask the HSA provider for the renewal fee. If your Fidelity Investments has your preferred HSA service provider, fill out the registration form, check the box next to “Billed for 60 days” and send it to the address on the form.

If you have a checkbook for the current HSA, you can also write a check and submit it using the renewal form for the new HSA.

At the end of the year, the HSA seller who distributes the money will send you a 1099 SA form with the distribution. Report the distribution in your tax software, which enters the accrued amount on Regulation 14b of IRS Form 8889. The amount transferred is not taxable. In May of each year, the receiving HSA provider will send you a 5498 SA form confirming normal contributions and renewals received in the previous year. Save 1099-SA and 5498-SA in your tax files to prove your renewal if necessary.

You can only make this DIY plant once a year.

The annual clock starts on the day you receive money from an HSA, not January 1. You have 60 days to fund a new HSA. That’s enough for me. Transfers between admin and admin are not limited in frequency, but providers usually charge a fee between $ 20 and $ 30. It’s not worth it. Roll it up yourself.

My wage deductions and employer contributions still go to the provider my employer has chosen. Next year I will transfer the account balance again after removing the annual flag from the general account.

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