Yes—but only once, and only under specific conditions. This is called a Qualified HSA Funding Distribution (QHFD), and it lets you move money from a traditional IRA directly into your HSA without paying income tax on the withdrawal.
💡 Key Rules:
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You must be HSA-eligible at the time of the rollover
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The transfer must go directly from the IRA to the HSA (trustee-to-trustee)
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You can only do this once in your lifetime
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The amount you roll over counts toward your HSA contribution limit for the year
Example: If you’re under 55 with self-only coverage in 2025, your HSA limit is $4,300. If you roll $4,000 from your IRA, you can only contribute $300 more that year.
⚠️ Testing Period Requirement:
After the rollover, you must remain HSA-eligible for 12 months (starting with the month of the transfer). If you lose eligibility early, the transfer becomes taxable and may be subject to a 10% penalty.
🧠 Tip:
This strategy is sometimes used by people who are low on cash but want to fund their HSA using existing retirement savings—especially when approaching Medicare age.