Managing Your HSA




The Basics of HSAs Who Can Have an HSA? Contributing to an HSA Using Your HSA Setting Up Your HSA Managing Your HSA Employer Participation in HSAs Trustees/Custodians


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Who has control over the money invested in a Health Savings Account? Can the funds in an HSA be invested? Will my bank notify me if I’ve exceeded my allowable contribution amount? Can I borrow against the money in my HSA? Can I roll the money in a Health Savings Account over into an IRA? Can I roll over an IRA, 401(k) or other retirement plan into an HSA? Can I roll funds in my Archer MSA into my HSA? What happens to the money in my HSA when I die?
  • Who has control over the money invested in a Health Savings Account?
    • The account holder controls all decisions over how the money is invested. You can also choose not to invest your funds.



  • Can the funds in an HSA be invested?
    • Yes, you can invest the funds in your HSA. The same types of investments permitted for IRAs are allowed for HSAs, including stocks, bonds, mutual funds, and certificates of deposit.



  • Will my bank notify me if I’ve exceeded my allowable contribution amount?
    • No, it is your sole responsibility to keep track of the amounts deposited and spent from your account, just like a normal savings or checking account.



  • Can I borrow against the money in my HSA?
    • No. You may not borrow against it or pledge the funds in it. For more information on prohibited activities, see Section 4975 of the Internal Revenue Code.



  • Can I roll the money in a Health Savings Account over into an IRA?
    • You cannot roll the HSA funds over into an IRA. They will stay in the HSA or be rolled into another HSA.



  • Can I roll over an IRA, 401(k) or other retirement plan into an HSA?
    • You cannot directly roll funds in an IRA, 401(k) or other retirement plan into an HSA. You can withdraw funds from one of these accounts, pay applicable taxes (and penalties) on the amount you withdraw, and then use the remaining funds to make a contribution to your HSA. However, the amount you contribute to your HSA is still limited by the annual contribution limits.



  • Can I roll funds in my Archer MSA into my HSA?
    • Yes, if you do so within 60 days of withdrawing the funds from the Archer MSA.



  • What happens to the money in my HSA when I die?
    • What happens depends on how the HSA is designed. If your spouse is designated as the beneficiary by you, your spouse becomes the owner of the HSA when you die. If you provide that it goes to your estate or other entity, the value of the HSA at death is income to the estate or other entity.