Providers

Trustee-to-Trustee Transfer

Moving HSA funds directly between custodians without taking a distribution, avoiding taxes and limits.

What is Trustee-to-Trustee Transfer?

A trustee-to-trustee transfer (also called a direct transfer) moves money from one HSA custodian directly to another without you ever receiving the funds. This is the preferred way to change HSA providers.

Unlike a rollover distribution (where you withdraw funds and recontribute within 60 days), trustee-to-trustee transfers have no limit on frequency and don't carry the risk of missing the 60-day deadline and triggering taxes.

To initiate a transfer, contact your new custodian and request a transfer form. They'll coordinate with your old custodian to move the funds. The process typically takes 1-3 weeks. Some custodians charge transfer-out fees, so check before you move.

Frequently Asked Questions

How long does a trustee-to-trustee transfer take?

Typically 1-3 weeks, depending on both custodians. Investments may need to be sold before transferring.

Are there fees to transfer my HSA?

Some custodians charge $25-$50 transfer-out fees. Check before you transfer, and factor this into your decision.

Can I do partial transfers?

Yes. You can transfer any amount you want, keeping some funds with your old custodian if you prefer.

Related Terms

HSA Custodian

The bank, credit union, or financial institution that holds and manages your HSA.

Rollover

Unused HSA funds that carry forward to the next year, unlike FSA balances that typically expire.

Portability

The ability to keep your HSA when you change jobs, retire, or switch health plans.

Learn More

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