Ronaldo0720 OP t1_j6nagnh wrote on January 31, 2023 at 3:27 PM

Reply to comment by sciguyCO in HSA Rollover to healthequity help! by Ronaldo0720

Thank you so much for this info. I posted below options for health equity to rollover. Should i just pick option 3 then ?

Option 1 — Check I have included a check for the amount of the distribution from another HSA. Please make check payable to HealthEquity. When you provide a check as payment, you authorize HealthEquity to either use the information from your check to make a one-time, Back Office Conversion (BOC), electronic fund transfer from your account if eligible, or to process the payment as a check transaction. Funds processed via BOC may be withdrawn from your account as soon as the same day your payment is received.

Option 2 — Use verified EFT account already on file associated to my HSA. Please provide last 4 of account number .* Note: Account must be verified for contributions in order for HealthEquity to pull the funds via EFT.

Option 3 — One-time electronic funds transfer (EFT). (Form must be accompanied by a copy of a voided or an actual check)

sciguyCO t1_j6nbwyc wrote on January 31, 2023 at 3:37 PM

Those just appear to be your options for moving money into the HSA. Whether that deposit gets marked as a rollover or a regular contribution would be a different selection. Unless you've already told HealthEquity you're doing a rollover and that was the next step?

Long-term, having a verified bank account "linked" with your HSA is handy, which appears to be option 2. That simplifies your ability to get money into / out of the HSA as needed. Usually you provide your checking account info, the HSA does a "test" deposit / withdrawal (sometimes multiples) of some small amount. Once those transactions shows up at your bank you come back to the HSA and provide the amount they sent to confirm all the info was correct.

Ronaldo0720 OP t1_j6ncqav wrote on January 31, 2023 at 3:42 PM

Those are the options to select to rollover the HSA. I think option 2 makes sense. That means they pull the money from my bank account instead of me actually sending them as option 3 says.

DeluxeXL t1_j6ndr9t wrote on January 31, 2023 at 3:49 PM

If you didn't write the check, don't assume it can be converted to ACH debit entry. It's safer to deposit the check and have the HSA debit your bank account.

sciguyCO t1_j6nf1lw wrote on January 31, 2023 at 3:57 PM

Exactly. It's a bit more preparation you'd have to do now (setting up that link before you can complete the rollover), but that'll keep your bank information on record for future use.

There is one other limitation I forgot to mention. The IRS only allows you to do one indirect HSA rollover every twelve months. So if you happen to need to do another rollover before January 2024, you'd have to make sure that future one is done as a "direct" transfer between the HSA providers. I think that twelve month period is based on the date of the withdrawal from the sending HSA, but I'm not 100% sure.

Ronaldo0720 OP t1_j6ngv52 wrote on January 31, 2023 at 4:08 PM

Thank you guys for your help. Much appreciated!