You can move HSA funds to a new account, but the rules depend on whether you keep the same account owner or switch to a different person

An HSA rollover is a one-time transfer of money from one Health Savings Account to another. The most common reason is changing jobs or health insurance — your old employer's HSA plan closes, so you move the balance somewhere you control. You can also consolidate multiple HSAs into one account, or move funds if your account provider goes out of business.

The IRS allows one rollover per HSA per 12-month period. If you move money from Account A to Account B, you cannot move money from Account A again for 12 months. This is separate from the trustee-to-trustee transfer rules, which have no frequency limit. The distinction matters because the two methods have different tax consequences if you miss the important date.

Key Takeaways

  • A rollover is a one-time transfer per account per 12 months; a trustee-to-trustee transfer has no frequency limit and is the safer route if your new provider offers it.
  • If you do a rollover yourself, you have 60 days to deposit the money into the new HSA or the IRS treats it as a withdrawal and taxes it as income.
  • You can only roll over an HSA to another HSA in your own name — you cannot transfer funds to a spouse's account or a dependent's account through a rollover.
  • Your old HSA provider must give you a check or electronic transfer; if they mail it to the new provider directly, it becomes a trustee-to-trustee transfer instead, which is actually better for you.

Rollover versus trustee-to-trustee transfer

A trustee-to-trustee transfer is when your old HSA provider sends money directly to your new provider without the money passing through your hands. This is the safest method because there is no 60-day important date and no tax risk. If your new HSA provider can accept a trustee-to-trustee transfer, ask your old provider to send the funds that way.

A rollover is when your old provider sends you a check or deposits money into your personal bank account, and you then deposit it into the new HSA yourself. You have 60 calendar days from the day you receive the money to put it into the new account. If the 60 days pass, the IRS treats the money as a withdrawal — you owe income tax on it plus a 20% penalty if you were under 65 at the time of withdrawal.

Not all HSA providers accept trustee-to-trustee transfers. Some smaller banks and investment firms that hold HSAs will do them; others will not. Call your new provider first and ask whether they accept trustee-to-trustee transfers. If they do, ask your old provider to initiate one. If they do not, you will need to do a rollover yourself.

The 60-day window for a rollover you do yourself

The 60 days starts the day you receive the money, not the day you request it. If your old provider mails a check on January 10 and you receive it on January 15, your 60-day clock starts on January 15. You must deposit the full amount into your new HSA by March 15 (60 days later). Weekends and holidays do not extend the important date.

The deposit must be into an HSA in your own name. The new provider will report the deposit to the IRS on Form 5498-SA. If you miss the 60-day window, the IRS has no way to know it was supposed to be a rollover — they see it as a withdrawal from the old account and income to you in the year you received it. You cannot file a late rollover claim or ask for an extension.

If you are worried about the important date, ask your old provider to send the money electronically rather than by check. Electronic transfers usually arrive within three to five business days. You can also ask your new provider whether they can accept the funds on your behalf if you authorize your old provider to send them directly — this converts the rollover into a trustee-to-trustee transfer, which is safer.

The one-rollover-per-12-months rule

Once you complete a rollover from Account A to Account B, you cannot do another rollover from Account A for 12 months. This rule applies per account, not per person. If you have two HSAs and roll over Account A, you can still roll over Account B in the same month — the restriction only affects Account A.

The 12-month period is measured from the date you received the money from the old account, not the date you deposited it into the new one. If you received a check on January 15, your next rollover from that account cannot happen until January 15 of the following year.

Trustee-to-trustee transfers do not count toward this limit. You can do unlimited trustee-to-trustee transfers. This is another reason to use that method if your provider offers it — you avoid the one-per-year restriction entirely.

What happens to your old HSA after a rollover

After you roll over the balance, your old HSA account still exists but has a zero balance. You can keep it open or close it — there is no penalty either way. Some people keep old accounts open because they want to preserve the account number or the investment history for records. Others close them to simplify their finances.

If you keep the old account open, you cannot make new contributions to it. Once you have rolled over the funds, that account is closed to new deposits. You can still use it to pay for may have access to medical expenses if you have receipts from before the rollover date, but most people find it simpler to close the account and move on.

Ask your old provider whether they charge a fee to close the account. Most do not, but some smaller institutions charge $25 to $50. If there is a fee, weigh it against the cost of keeping the account open — some charge annual maintenance fees of $10 to $15 per year.

Rolling over when you change jobs or insurance

When you leave a job, your employer's HSA plan does not automatically close. You can usually keep the account open and continue to use it for medical expenses, but you cannot make new contributions once you are no longer covered by a high-deductible health plan through that employer. If you enroll in a new high-deductible plan with your new employer, you can open a new HSA there.

You do not have to roll over your old HSA. You can keep both accounts open indefinitely — there is no rule against having multiple HSAs. However, there is an annual contribution limit that applies across all your HSAs combined. If you have two accounts, the total you can contribute in a year is the same as if you had one account. Keeping multiple accounts makes it harder to track whether you are over the limit, so most people consolidate into one.

If you want to move your old balance to your new employer's HSA, contact your new employer's plan administrator and ask for the account details. Then contact your old provider and request a rollover or trustee-to-trustee transfer. The process usually takes two to four weeks.

Consolidating multiple HSAs into one account

If you have accumulated HSAs from previous jobs, you can roll them all into a single account. You can do one rollover per account per 12 months, so if you have three old accounts, you can roll one per month and consolidate them all within three months.

Before you start, decide which account will be your main account. This should be the one with the best features — lowest fees, best investment options, or the provider you prefer to work with. Then contact each old provider and request a rollover to your main account.

Keep records of each rollover — the date you received the money, the date you deposited it, and the amount. If the IRS ever questions whether a deposit was a rollover or a contribution, you will need to show the timeline. Your new provider will report the deposits on Form 5498-SA, but that form does not distinguish between contributions and rollovers, so your own records are your proof.

Frequently Asked Questions

Can I roll over my HSA to my spouse's HSA?

No. A rollover must go into an HSA in your own name. If you are married and want to consolidate HSAs, you and your spouse each keep your own accounts — you cannot combine them. You can each do a rollover to a new provider if you want to simplify, but the accounts remain separate.

What if I miss the 60-day important date?

The money is treated as a taxable withdrawal. You owe income tax on the amount at your ordinary tax rate, plus a 20% penalty if you were under 65 when you withdrew it. You cannot file an amended return to claim it as a rollover after the fact. The only exception is if the IRS grants a waiver for reasonable cause, which is rare and requires you to file Form 8329 with documentation of why you missed the important date.

Do I have to roll over my entire HSA balance?

No. You can roll over part of the balance and leave the rest in the old account. However, the one-rollover-per-12-months rule applies to the account, not to individual transactions. If you do a partial rollover, you cannot do another rollover from that account for 12 months, even if you want to move the remaining balance later.

What if my old HSA provider is closing?

Contact them and ask whether they will do a trustee-to-trustee transfer to your new provider. If the company is going out of business, they are usually required to help you move your funds. If they will not cooperate, contact your state's banking regulator or the IRS for guidance on how to proceed.

Do I report a rollover on my tax return?

No. A rollover is not taxable income and does not go on your tax return. Your old provider will send you Form 1099-SA showing the distribution, and your new provider will send Form 5498-SA showing the contribution. These forms tell the IRS that the money moved between accounts, so there is no tax owed. Keep copies for your records.