IRA to Health Savings Account (HSA) Transfer
L1: IRA to Health Savings Account (HSA) TransferThanks for your prior advice in establishing my 72t plan. My question has to do with a planned one time transfer out ofan IRA- nonsepp accountto fund a HSA account, I was informed by my IRA custodiian that they would treat this as a rollover and code the transfer with “G”, reportable. This happens to be the same code that I receive when I fund IRA”s from my 401K with direct rollovers. The custodian states that this is done becauseit is not an IRA to IRA transfer. Is code G correct?
Thanks, Bob2008-02-25 20:54, By: car-tows, IP: [184.108.40.206]
L2: IRA to Health Savings Account (HSA) TransferYes. Code “G” is a “direct rollover to a “Qualified Plan”, and the IRS considers an HSA as such, even though it is not a “retirement plan”. I guess the IRS didn”t realize they hasn”y used “H” yet, and it would have made sense to everyone to use a different code. Who ever said the IRS made sense ????
There are no tax implications, but you have to enter the figure in 15a, and enter -0- in 15b.2008-02-25 21:04, By: dlzallestaxesd, IP: [220.127.116.11]
L2: IRA to Health Savings Account (HSA) TransferThanks for your answer. One more question.
Does this code “G” rollover, count as a rolloverwithin the 365 day regulation or does the regulation only concern distributions takenthat are later rolled over?
Thanks, Bob2008-02-26 09:04, By: car-tows, IP: [18.104.22.168]
L2: IRA to Health Savings Account (HSA) TransferThe chances are that the “rollover” is not really a “rollover”, but is a direct trustee-to-trustee TRANSFER”. Technically, a “ROLLOVER” is one in which the check is drawn to the individual, who deposits it in his own account, and then writes his own check to the HSA or IRA, or whomever. Direct TRANSFERS are usually, erroneously, called “rollovers”, but they aren”t really.
If, however, it wasn”t a direct trustee ransfer, then unfortunately I think it would fall into the 365 day limitation.2008-02-26 09:11, By: dlzallestaxes, IP: [22.214.171.124]
L2: IRA to Health Savings Account (HSA) Transfer
The transaction should be reported with a 7′ or a 1′ ( a regular distribution) , depending on your age.
See the article at
The 365 day limitation does not apply
2008-03-01 04:46, By: Denise Appleby, IP: [126.96.36.199]