Transfer your HSA

Typically, you will not need to report an HSA transfer on your taxes, but you do need to report a rollover request.

A rollover request differs from a transfer because your current HSA provider sends your funds directly to you and not to your new HSA provider. That means the IRS views a rollover as a distribution from your account, and you must deposit the money received into a new HSA within 60 days to avoid paying a 20% penalty and income taxes.

Please call your current HSA provider to make sure they’ve received and processed your transfer request. You can sign in to your account at any time to see if your transfer balance has been deposited.

Check with your current HSA provider about transfer fees. They may charge a fee to close and transfer your HSA to another provider.

Optum Bank does not charge a fee to open an HSA or transfer HSA funds to us. However, there may be an outbound transfer fee to another provider if you close and transfer your Optum Bank HSA.

No, your investments will not transfer in-kind to Optum Bank due to varying investment lineups. You will need to liquidate your investments to cash before transferring your HSA to Optum Bank.

You should also be sure to turn off any automatic investments in your current HSA to avoid reinvesting of your funds in your account.

• Close the HSA you want to transfer. Be sure to initial the box in Step 3 of the transfer form, which authorizes your current HSA provider to close your account. Otherwise, that HSA will remain open and the provider may charge you a monthly fee.
  
  
• Include your HSA account numbers (from both the HSA you want to transfer and your Optum Bank HSA). You can find your account number on your HSA statement. If you can’t find your account number, you can list your social security number as the primary account holder.
  
  
• Sign the transfer form with a handwritten signature. Do not type in your signature.
  
  
• Liquidate your investments first. We do not accept “in-kind” transfers of mutual funds and/or other securities. Note that HSAs are tax exempt for purposes of federal income tax filings. HSAs are also tax exempt for most state income tax filings. However, some states do tax your HSA contributions and even potentially the earnings and capital gains. Please consult your tax advisor regarding your state’s specific rules.
  
  
• Turn off automatic investments in the HSA you want to transfer. Be sure to turn off this feature to prevent reinvesting of your funds.

The easiest place to find your 12-digit account number is in your online account when you sign in. You can also find your account number on your your HSA statement and in your HSA welcome kit.

Please note, the number on your payment card is NOT your account number. If you can’t find your account number, you may list your social security number instead of your account number as the primary account holder on the HSA transfer form.

If you're no longer eligible to contribute funds to your current HSA, you can still transfer your HSA funds to Optum Bank.

Yes, the IRS allows you to do a once in a lifetime rollover from an individual retirement account (IRA) to your HSA. You may use your IRA money to fund an HSA up to the contribution limits in a given year, as long as you have a qualifying high deductible health plan for the following 12 months. Please consult your tax advisor to see if this makes sense for your personal situation. If you would like to roll over money from your IRA to your HSA, please complete our IRA Rollover Request Form.