Short answer: Yes—but only once in your lifetime. This is called a Qualified HSA Funding Distribution, and the amount transferred counts toward your annual HSA contribution limit.
The IRS allows a one-time transfer from an Individual Retirement Account (IRA) into a Health Savings Account. This is known as a Qualified HSA Funding Distribution (QHFD).
With a QHFD, funds are moved directly from a traditional IRA or Roth IRA into your HSA. The transfer is not included in taxable income, but it does count toward your HSA contribution limit for the year.
Several conditions must be met. You must be HSA-eligible at the time of the transfer, and the money must move directly from the IRA trustee to the HSA trustee. You cannot take possession of the funds yourself.
You are limited to one QHFD during your lifetime, regardless of how many HSAs or IRAs you have. The maximum amount that can be transferred is capped at the annual HSA contribution limit for your coverage type.
For 2026, that limit is $4,400 for self-only coverage and $8,750 for family coverage. If you are age 55 or older, you may include the $1,000 catch-up amount as part of the transfer.
After completing a QHFD, you must remain HSA-eligible for a 12-month testing period starting with the month of the transfer. If you lose eligibility during that period, the transferred amount becomes taxable and is generally subject to a 10% additional tax.
This strategy is sometimes used by individuals who want to fund an HSA without using current cash, particularly when planning for future medical expenses.
Sources
- IRS, Publication 969 – Health Savings Accounts (Qualified HSA Funding Distributions): https://www.irs.gov/forms-pubs/about-publication-969
- IRS, Internal Revenue Code §223(f)(5): https://www.law.cornell.edu/uscode/text/26/223
Content history
Originally published: March 27, 2025
Last reviewed: January 29, 2026