Tax Year Prior to 2020: 401k to HSA

Forum|Forum|7 years ago
December 3, 2018
1 reply
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My previous employer sent me a notice that my 401k was due to be paid out to me via check at the end of December. But that means I lose 20% in taxes, and another 10% as a penalty [I think] because I'm only 30.

I'd like to rollover the 401k into my HSA, so I can pay my medical bills. Both accounts are pretax money so it seems logical to me, but I can't find any articles supporting this move.

Is it possible, legal, and advisable to rollover my 401k into an HSA?

note: I do have a Roth IRA but as that's post-tax money, and if I rolled the 401k into that [as far as I can tell] I'd still have to pay all those taxes and penalties, and I just want to switch from one pre-tax account to another. Thank you.

KarenL

Employee

Unfortunately, you cannot roll a 401(k) into an HSA. Your only options are to roll it into a Traditional IRA, another 401(k), or some other qualified retirement account.

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