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sciguyCO t1_j6nbwyc wrote

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

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.

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Ronaldo0720 OP t1_j6ncqav wrote

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.

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DeluxeXL t1_j6ndr9t wrote

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.

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sciguyCO t1_j6nf1lw wrote

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.

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Ronaldo0720 OP t1_j6ngv52 wrote

Thank you guys for your help. Much appreciated!

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