You are allowed a one-time, tax-free, trustee-to-trustee transfer of IRA funds into your HSA if the following certain conditions are met:
- The transfer of funds from the IRA to the HSA is made in direct trustee-to-trustee transfer
- You are covered by a high-deductible health plan and remain eligible for 12 months after your IRA rollover. If you are not eligible for 12 months after the rollover, the funds transferred will be treated as taxable income and subject to a 10 percent excise tax
- The IRA being rolled over into the HSA is a traditional or Roth IRA
- The amount of the IRA rollover to the HSA does not exceed the maximum annual contribution limits. The amount transferred from your IRA, plus your employer contributions, plus your contributions will all apply against the maximum annual contribution and you must ensure the total of all these do not exceed the maximum annual contribution limits