Can I transfer money from my traditional IRA to a health savings account?
If you have an HSA-eligible health insurance policy, then you can roll money over from a traditional IRA to an HSA and avoid a tax bill on that money when you withdraw it for medical expenses. However, you can make the tax-free rollover only once in your lifetime, up to the annual HSA contribution limit ($3,300 if you have individual coverage or $6,550 for family coverage, plus $1,000 if you are 55 or older anytime during the year), minus any contributions you’ve already made to the HSA for the year. You must be enrolled in an HSA-eligible policy for 12 months after making the transfer to avoid penalties.
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