can i have two HSA accounts?

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can i have two HSA accounts?

Postby LH » Tue Mar 03, 2009 3:10 am

I am currently switching jobs, have one HSA with 9k in it.

My new job, is gonna put the 5K into an HSA for me.

Can i just have two HSAs? Or do I need to liquidate the old one?

thanks,

LH
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Re: can i have two HSA accounts?

Postby billern » Tue Mar 03, 2009 4:29 am

LH wrote:I am currently switching jobs, have one HSA with 9k in it.

My new job, is gonna put the 5K into an HSA for me.

Can i just have two HSAs? Or do I need to liquidate the old one?

thanks,

LH
You don't need to liquidate the old one. The biggest issue that you may run in to is over-funding the account. Make sure that the total funded for 2008 and 2009 are less than or equal to the maximum allowable.
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Re: can i have two HSA accounts?

Postby BruceM » Tue Mar 03, 2009 3:24 pm

LH wrote:I am currently switching jobs, have one HSA with 9k in it.

My new job, is gonna put the 5K into an HSA for me.

Can i just have two HSAs? Or do I need to liquidate the old one?

thanks,

LH


There is no rule that, like IRAs, prevents you from having more than one HSA at a time. Although I can't find any reference to it in Pub 969, I don't think you could maintain a second HDHP (and I can't think of why you'd want to), as one of the requirements for HSA eligiblility is not carrying any other form of medical insurance coverage (although other forms of coverage such as dental, eye, hearing, LTC etc may be carried concurrently)

And you certainly wouldn't want to 'liquidate' anything that is tax deferred, as the non-qualified distribution would be ordinary income and subject to the 10% penalty. If you don't want to maintain two HSA accounts, simply transfer one to the other, or do a rollover (distribute to you and deposit this to your second HSA within 60 days)

Question: is your new employer paying the premium on the HDHP along with making an annual pretax contriution to this HSA? Or are you paying the HDHP premium?

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Postby LH » Tue Mar 03, 2009 8:08 pm

yeah liquidate poor choice of words, i meant closing transfering the account to the other hsa.

My understanding is that they will pay the premium, and the 5k (whatever it actually is) into the hsa for me.

Thanks for the help, much appreciated,

LH
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Postby tadamsmar » Wed Mar 11, 2009 2:25 pm

1. You can have multiple HSAs

2. You might end up paying more fees overall with two. But, if the HSA that your employer contributes to is not the best HSA available, then there might some situation where having another is to your advantage. You could transfer funds to the best one and get an overall advantage, perhaps.

3. Have you made any contributions for the to the old one for the same year that your employer is contributing to the new one? If so, check to see that these contributions don't exceed the limit.

4. There is one situation where a family needs 2 HSAs. If the spouse who is not primary on a family HDHP is over 54 years of age, then that spouse must have a separate HSA in the spouse's own name for their catch-up contributions. This is the only way to maximize the family's contribution rate.
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Re: can i have two HSA accounts?

Postby njvj » Wed Jan 08, 2014 6:51 pm

Can I transfer money from one HSA account to another while keeping them both open?

First account is through employer and does not give good investment options.

Second account is through HSABank and gives investment options through TD Ameritrade
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Re: can i have two HSA accounts?

Postby LH » Wed Jan 08, 2014 7:45 pm

njvj wrote:Can I transfer money from one HSA account to another while keeping them both open?

First account is through employer and does not give good investment options.

Second account is through HSABank and gives investment options through TD Ameritrade


Yes, you can.

I have had at one point I think three HSA accounts open.

I have my HSA HSA account that vanguard links to on thier site, this is my main HSA I use as part of my asset allocation. I currently have just opened another HSA that my current employer uses.

The government views your HSA as one account, no matter how many banks are acting as custodian for various parts of it. The same is true of IRA. You can have an etrade traditional IRA, and a vanguard traditional IRA, to the government, you just have one IRA.

Now, the thing about the employer HSA, you can
1)keep some money in it keep it open, and transfer the majority to your investment HSA. Then the question is, how much, and how much fees and such per balance.

2)Close it down, transfer it entirely each year to your investment HSA.

I would ask the employer HSA about option 2, they said it was fine with them my last employer HSA. This new one, will have to give them a call.

Its gotten easier, the first time I did this, it was the first they had really had transfered an HSA it seemed like.

Remember, keep all your medical receipts forever, to prove your cost basis 30 years from now.
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