If you have more than one Health Savings Account (HSA), consolidating them may help you:
Rachel just changed jobs. At her previous employer, she had a high-deductible health plan (HDHP) with an HSA that had a balance of $900. During benefits enrollment at her new company, she enrolls in an HDHP and elects to contribute to the HSA that is administered through Bank of America. She soon realizes the extra effort of managing health care spending, contributions and tax forms across two accounts.
Rachel consolidates her HSAs into her Bank of America HSA, and her total balance is now enough for her to start investing. She also saves on fees by closing out her previous account.
The easiest way to move money from other HSAs into your current Bank of America HSA is to initiate a trustee-to-trustee transfer.
Yes, you’ll need to have your new account open—with the account number on hand—to complete the funds transfer.
Don’t already have a Bank of America HSA? Open one today.
You must be the owner of the account, the surviving spouse of a deceased account holder or the former spouse of an account holder who is receiving an interest pursuant to a divorce or separation agreement in order to transfer HSA funds.
Bank of America does not charge any fees with a trustee-to-trustee transfer of funds into the HSA. Other trustees/custodians may charge fees associated with account closure and/or a trustee-to-trustee transfer.
Contributing to an HSA can potentially save you money on your taxes. Pre-tax payroll contributions to your HSA may be exempt from federal and most state taxes or you may be able to claim a tax deduction for after-tax contributions you make to your HSA.
Transfers are non-reportable and non-taxable events. 1Yes, a transfer is a direct trustee-to-trustee transaction. With a rollover, you receive a cash distribution directly from your previous trustee/custodian and have up to 60 days to redeposit the funds to Bank of America to avoid additional penalty taxes. Rollovers are both reportable and taxable, and you can only initiate one rollover per 12-month period for each HSA. 1
Yes, you can transfer or rollover a portion of your IRA savings to your HSA to benefit from potential federal tax savings on withdrawals for qualified medical expenses. 1
1 Bank of America Health Benefit Solutions does not provide tax or legal advice. This summary is provided solely for general information purposes, and is not to be construed as tax or legal advice. Please consult with your own attorney or tax advisor to understand the tax and legal consequences of your HSA and your particular situation.
Make the HSA from Bank of America part of your long-term savings plan.
Understand the fundamentals of contributing to your HSA.
See the potential for account growth over the long term.
Complete the form to consolidate your accounts with Bank of America.
About Triple Tax Advantages: You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. Any interest or earnings on the assets in the account are tax free. You may be able to claim a tax deduction for contributions you, or someone other tahn your employer, make to your HSA. Bank of America recommends you contact qualified tax or legal counsel before establishing an HSA.
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.
Bank of America, N.A. makes available The HSA for Life® Health Savings Account as a custodian only. The HSA for Life is intended to qualify as a Health Savings Account (HSA) as set forth in Internal Revenue Code section 223. However, the account beneficiary establishing the HSA is solely responsible for ensuring satisfaction of eligibility requirements set forth in IRC sec 223. If an individual/employee establishes a HSA and s/he is not otherwise eligible, s/he will be subject to adverse tax consequences. In addition, an employer making contributions to the HSA of an ineligible individual may also be subject to tax consequences. We recommend that applicants and employers contact qualified tax or legal counsel before establishing a HSA.
Bank of America does not sponsor or maintain the Flexible Spending Accounts (FSA) / Health Reimbursement Accounts (HRA) that you establish. The programs are sponsored and maintained solely by the employer offering the plan, or by an individual establishing an independent plan. Bank of America acts solely as claims administrator performing administrative tasks pursuant to an agreement with, and at the direction of, the sponsoring employer or individual under an independent plan. The sponsoring employer or individual under an independent plan is solely responsible for ensuring such arrangements comply with all applicable laws.
The planning tools and information calculators are illustrative only, and accuracy is not guaranteed. They are intended to provide a comparative tool for various consumer health care options and potential costs and savings of those options. Bank of America and its affiliates are not tax or legal advisors. The calculators are not intended to offer any tax, legal or financial advice and do not assure the availability of or your eligibility for any specific product offered by Bank of America or its affiliates. Please consult with qualified professionals to discuss your situation. This site may contain links to third-party content, which may be articles, videos, or calculators, regarding health plans only as a convenience. Some articles, videos and calculators may have been written and produced by third parties not affiliated with Bank of America or any of its affiliates.
Neither Bank of America nor any of its affiliates or employees provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material should be regarded as general information on health care considerations and is not intended to provide specific health care advice.
Please consult with your own attorney or tax advisor to understand the tax and legal consequences of establishing and maintaining a HSA, FSA, Dependent Care FSA, and/or HRA plan.
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Mutual Fund investment offerings for the Bank of America HSA are made available by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer, registered investment adviser, Member SIPC, and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”). Investments in mutual funds are held in an omnibus account at MLPF&S in the name of Bank of America, N.A., for the benefit of all HSA account owners. Recommendations as to HSA investment menu options are provided to Bank of America, N.A. by the Chief Investment Office (“CIO”), Global Wealth & Investment Management (“GWIM”), a division of BofA Corp. The CIO, which provides investment strategies, due diligence, portfolio construction guidance and wealth management solutions for GWIM clients, is part of the Investment Solutions Group (ISG) of GWIM.
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