Kate Ashford

There's a basic account rollover where your current HSA provider sends you the check, and then you deposit that money into a new account. And then there is an in-kind transfer, which works like the company-to-company transfer, except everything can be moved over in its current form. So cash is sent as cash, and investments are transferred as investments.

Of the three ways that I just mentioned to rollover an HSA, the first two are cash only. So if you do a trustee to trustee transfer or the kind of transfer where your money gets sent to you and you deposit it, those have to happen in cash. So you would have to liquidate investments before transferring. And so it sounds like that's what Vicki is doing here.

Of the three ways that I just mentioned to rollover an HSA, the first two are cash only. So if you do a trustee to trustee transfer or the kind of transfer where your money gets sent to you and you deposit it, those have to happen in cash. So you would have to liquidate investments before transferring. And so it sounds like that's what Vicki is doing here.

Of the three ways that I just mentioned to rollover an HSA, the first two are cash only. So if you do a trustee to trustee transfer or the kind of transfer where your money gets sent to you and you deposit it, those have to happen in cash. So you would have to liquidate investments before transferring. And so it sounds like that's what Vicki is doing here.

There's the potential to do that third in-kind transfer where you can transfer investments directly, but not all HSA companies offer this, so it's not as common to do it that way. If you do have investments, you can ask your provider whether this is an option.

There's the potential to do that third in-kind transfer where you can transfer investments directly, but not all HSA companies offer this, so it's not as common to do it that way. If you do have investments, you can ask your provider whether this is an option.

There's the potential to do that third in-kind transfer where you can transfer investments directly, but not all HSA companies offer this, so it's not as common to do it that way. If you do have investments, you can ask your provider whether this is an option.

You are correct. Selling investments can certainly have tax implications depending on where you live because some states tax your capital gains. So this applies if there's been any growth on any of the contributions to your account. Capital gains treatment is state-specific, so Vicki will need to check on the laws in their state to see how that would be handled.

You are correct. Selling investments can certainly have tax implications depending on where you live because some states tax your capital gains. So this applies if there's been any growth on any of the contributions to your account. Capital gains treatment is state-specific, so Vicki will need to check on the laws in their state to see how that would be handled.

You are correct. Selling investments can certainly have tax implications depending on where you live because some states tax your capital gains. So this applies if there's been any growth on any of the contributions to your account. Capital gains treatment is state-specific, so Vicki will need to check on the laws in their state to see how that would be handled.

And to clarify, you're only going to owe capital gains taxes if you roll over your HSA. If you leave the account alone, those gains are tax-free.

And to clarify, you're only going to owe capital gains taxes if you roll over your HSA. If you leave the account alone, those gains are tax-free.

And to clarify, you're only going to owe capital gains taxes if you roll over your HSA. If you leave the account alone, those gains are tax-free.

Well, Sean, the good news is that HSA rollovers are tax-free unless you're dealing with capital gains taxes, and that's going to depend on your state. So if you have investments and there's the option to do an in-kind transfer, that would be the best way to avoid taxes on the rollover.

Well, Sean, the good news is that HSA rollovers are tax-free unless you're dealing with capital gains taxes, and that's going to depend on your state. So if you have investments and there's the option to do an in-kind transfer, that would be the best way to avoid taxes on the rollover.

Well, Sean, the good news is that HSA rollovers are tax-free unless you're dealing with capital gains taxes, and that's going to depend on your state. So if you have investments and there's the option to do an in-kind transfer, that would be the best way to avoid taxes on the rollover.

Well, Vicki is right to be keeping an eye on the timing, but the timing is only a worry if they're managing a transfer themselves. So if the HSA company is sending them a check and they have to deposit it with a new provider, they've got 60 days to make that happen. But if the HSA company is just moving that money directly to the new HSA company, they don't have to worry about a deadline.

Well, Vicki is right to be keeping an eye on the timing, but the timing is only a worry if they're managing a transfer themselves. So if the HSA company is sending them a check and they have to deposit it with a new provider, they've got 60 days to make that happen. But if the HSA company is just moving that money directly to the new HSA company, they don't have to worry about a deadline.

Well, Vicki is right to be keeping an eye on the timing, but the timing is only a worry if they're managing a transfer themselves. So if the HSA company is sending them a check and they have to deposit it with a new provider, they've got 60 days to make that happen. But if the HSA company is just moving that money directly to the new HSA company, they don't have to worry about a deadline.

If you are managing a transfer and you don't get the money deposited within 60 days, the IRS basically looks at that as you taking a taxable withdrawal. So you may owe income taxes, plus there will be a 20% penalty. So we do not recommend missing that deadline.