HSA Remaining Funds

Forum|Forum|7 years ago
June 1, 2019
1 reply
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What is the tax and penalty percentage for withdraw all funds in HSA? The case is that I am no longer with previous employer. The current healthcare plan provided by current employer won't quality HSA. To keep the old HSA account, the account administrator charges a high monthly fee.

Best answer by HelenaC

Instead of pulling the money from your HSA and being subject to ordinary income tax and a 20% penalty tax, you may want to rollover your HSA funds to a new HSA administrator.

In order to transfer your balance from an existing HSA to your new HSA your first step should be to contact the financial institution for your existing account and request a transfer/rollover form specifically to move funds out and close your account. Fill out the bank form as instructed. See HSA Transfer – HSA Rollover – Transfer Funds into an HSA - HSA Bank

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HelenaCAnswer

Employee

Instead of pulling the money from your HSA and being subject to ordinary income tax and a 20% penalty tax, you may want to rollover your HSA funds to a new HSA administrator.

In order to transfer your balance from an existing HSA to your new HSA your first step should be to contact the financial institution for your existing account and request a transfer/rollover form specifically to move funds out and close your account. Fill out the bank form as instructed. See HSA Transfer – HSA Rollover – Transfer Funds into an HSA - HSA Bank