I have a taxpayer who wants to transfer funds from an IRA account to an H S A account tax free. Is this something I can do and how often can I do it?

[AshleyatIntuit · Accepted solution]

If I were you i would read thru some "IRA to HSA transfer rules", you can simply google, but for the most part, yes and no..... .https://www.google.com/search?q=ira+to+hsa+transfer+rules&ie=utf-8&oe=utf-8&client=firefox-b-1-ab

Blurbs include:

• . A Qualified HSA Funding Distribution allows investors to transfer funds from an IRA to an HSA tax free and penalty free (no 10% early withdrawal penalty). The amount transferred cannot total more than what the investor would be allowed to contribute to an HSA for that year.
• You can only transfer money from an IRA to an HSA if you're eligible to make new HSA contributions. Because you've enrolled in Medicare, you can no longer contribute to your HSA, although you can use the money in the account tax-free for eligible medical expenses.
  
• Yes, you can roll money over from an IRA to an HSA as long as you have an HSA-eligible high-deductible health insurance policy (to qualify to make HSA contributions in 2013, your health insurance policy must have a deductible of at least $1,250 for individual coverage or $2,500 for family coverage).
  

So if i were you would do that and also look into their particular situation before providing any info to your client.