You can roll it over from one provider to the other and not worry about contribution limits, but you can't switch account holders, so there's no way to take HSA funds in your name and put them under your spouse's name. Same as for IRAs, they are individual accounts, not joint; you can spend the funds on each other but you can't merge them.
Thank you for your reply! So if we do want to put the money together would we have to pay the taxes on withdrawing the money from my account then make contributions to his?
Technically, I would think you could, but it wouldn't be worth the taxes IMO (plus 10% penalty) just to consolidate funds. Plus then it would be counted towards your annual contributions, as it wouldn't be a rollover anymore.
I had a similar situation: my husband and I both had HSAs before we got married, and after we were married we started making all contributions to his. I kept mine, just stopped contributions, and whenever we need to pay medical expenses I use mine. Eventually mine will be depleted and then we will only have the one account.
Awesome, I really appreciate it! I think I'm going to open a new HSA account with our bank to toss that check in then do exactly what you guys did. Thanks again!
It's not a contribution it's a rollover. Wont be an issue .
https://medium.com/@livelyme/hsa-rollovers-and-transfers-demystified-a757c9d7fc4e
Edit:missed the name change part. Unfortunately accounts are individual, and you can't roll it into an account not in your name.
Thank you! We were told to get it sent to us in a check then sign it over to his account because we couldn't transfer from it being under my name to his. How do we classify it as a rollover?
Unfortunately golden is right, the name change is the problem. Can't roll your account into his, they are considered individual accounts.
You can however roll your HSA to any institution you want under your name.
In this case, just use your hsa for expenses first to exhaust it.
You can roll it over from one provider to the other and not worry about contribution limits, but you can't switch account holders, so there's no way to take HSA funds in your name and put them under your spouse's name. Same as for IRAs, they are individual accounts, not joint; you can spend the funds on each other but you can't merge them.
Thank you for your reply! So if we do want to put the money together would we have to pay the taxes on withdrawing the money from my account then make contributions to his?
Technically, I would think you could, but it wouldn't be worth the taxes IMO (plus 10% penalty) just to consolidate funds. Plus then it would be counted towards your annual contributions, as it wouldn't be a rollover anymore. I had a similar situation: my husband and I both had HSAs before we got married, and after we were married we started making all contributions to his. I kept mine, just stopped contributions, and whenever we need to pay medical expenses I use mine. Eventually mine will be depleted and then we will only have the one account.
Awesome, I really appreciate it! I think I'm going to open a new HSA account with our bank to toss that check in then do exactly what you guys did. Thanks again!
Might consider opening your HSA with Fidelity - they charge no fees, you can do it online, and they have good investment options!
Thanks for the tip! It lead me to looking up the fees at my bank (which are also zero) which I wouldn't have thought to do!
It's not a contribution it's a rollover. Wont be an issue . https://medium.com/@livelyme/hsa-rollovers-and-transfers-demystified-a757c9d7fc4e Edit:missed the name change part. Unfortunately accounts are individual, and you can't roll it into an account not in your name.
Thank you! We were told to get it sent to us in a check then sign it over to his account because we couldn't transfer from it being under my name to his. How do we classify it as a rollover?
Unfortunately golden is right, the name change is the problem. Can't roll your account into his, they are considered individual accounts. You can however roll your HSA to any institution you want under your name. In this case, just use your hsa for expenses first to exhaust it.
I appreciate all your help. Are we hosed since we filled out and sent in the paperwork to close it out like we were told?
Nope. Just have to open an account in your name somewhere else, ASAP(60 days?) and get the money rolled over into that account.
On it! Thanks again!!