Individuals
Institutions
Advisors
Rollover IRA

Funding Options

Rollovers

You may elect to receive funds directly from your current HSA administrator and roll these funds to HSA Manager with Millennium Trust Company. This particular transaction is a “rollover." Rollovers are permitted with the following limitations:

  • Only one rollover per 12 month period is permitted 
  • The rollover to an HSA must be completed within 60 days
  • Rollovers may be made with in-kind assets and/or cash
  • Direct rollovers from 401(k), 403(b) and 457 plans are not currently permitted 

Transfers

A transfer is a direct movement of funds from trustee to trustee. Unlike a rollover, you will not receive funds from your HSA when making a direct transfer. Transfers are not subject to the rollover restrictions outlined above. However, you should be aware of the following guidelines: 
 
  • Multiple trustee-to-trustee transfers are allowed in a single year
  • Transfers may be made with in-kind assets and/or cash
  • Both custodians must agree to do the transfer

You are also permitted to make a one-time tax-free transfer directly from your IRA to your HSA, as a trustee-to-trustee transfer. However, the amount transferred from your IRA cannot exceed your maximum annual HSA contribution limit. The amount transferred will reduce the amount dollar-for-dollar you could otherwise contribute that year to your HSA. Currently, there is no comparable transfer back to your IRA.

To transfer additional funds to HSA Manager, please complete the Transfer Authorization Form.

 

Contributions

Contributions to an HSA can be made by individuals, employers and other third parties. Any contributions you make to your HSA are tax-deductible and belong exclusively to you, the account holder. In addition:

  • Employer contributions are excluded from employees’ income and are not subject to withholding for income tax purposes
  • An excise tax of 6% is imposed for all contributions made by you or your employer that are in excess of the contribution limits
  • Contributions must be made in cash
  • Earnings accumulate tax-deferred and do not have to be included in gross income while held in an HSA
  • Once an individual enrolls in Medicare, contributions must stop
  • Now or in the future however, the money may remain in your HSA to pay medical expenses tax-free
  • An additional “catch-up” contribution ($1,000 in 2011) is available to individuals age 55 and over who are not enrolled in Medicare


Contribution Limits

Year 
Maximum Single
Contribution
Maximum Family
Contribution
2011
$3,050
$6,150
2012
$3,100
$6,250