How Do I Transfer My Existing HSA to a New Provider?
Dec 26, 2025
Key Takeaways
You can transfer your HSA to a new provider at any time without losing tax benefits
A trustee-to-trustee transfer is the safest and most recommended option
A 60-day rollover is allowed but comes with strict rules and higher risk
Some HSA providers charge transfer or account closure fees
Partial HSA transfers are possible if you want to keep your old account open
HSAs are fully portable and stay with you even if you change jobs or plans
How Do I Transfer My Existing HSA to a New Provider?
Transferring your Health Savings Account (HSA) to a new provider is a common—and often smart—financial move. Whether you’re looking for lower fees, better investment options, or a more user-friendly platform, the process is simpler than many people expect.
In this guide, we’ll walk through how to transfer your existing HSA to a new provider, explain your transfer options, and highlight common mistakes to avoid so you can move your money without triggering taxes or penalties.
What Is an HSA Transfer?
An HSA transfer (also called an HSA rollover) allows you to move funds from one HSA provider (trustee) to another without losing the tax advantages of your account.
HSAs are portable, meaning the account belongs to you—not your employer. You can change providers at any time, even if you’re no longer enrolled in a high-deductible health plan (HDHP).
Reasons You Might Want to Transfer Your HSA
People typically switch HSA providers for one or more of these reasons:
High monthly maintenance or investment fees
Limited or poor investment options
Low interest rates on cash balances
Employer switched HSA administrators
Better tools, apps, or customer service elsewhere
If any of these apply to you, transferring your HSA could save you money and improve long-term growth.
Two Ways to Transfer Your HSA
There are two IRS-approved ways to move your HSA funds. Choosing the right one is critical to avoid taxes.
Trustee-to-Trustee Transfer (Recommended)
This is the simplest and safest method.
How it works:
Your new HSA provider initiates the transfer
Funds move directly between providers
You never take possession of the money
Pros:
No taxes or penalties
No IRS reporting required
Can be done multiple times per year
Cons:
May take 2–6 weeks
Old provider may charge a transfer fee
👉 Best for most people
60-Day Rollover
This method involves temporarily withdrawing your HSA funds and redepositing them into a new HSA.
How it works:
You request a distribution from your old HSA
You deposit the funds into a new HSA within 60 days
Important rules:
You must redeposit 100% of the funds within 60 days
You can only do one rollover per 12-month period
Missing the deadline triggers taxes + a 20% penalty
Pros:
Faster access to funds
Cons:
Easy to make costly mistakes
Requires IRS reporting
👉 Only use this if a trustee-to-trustee transfer isn’t possible
Step-by-Step: How to Transfer Your HSA to a New Provider
Step 1: Open a New HSA Account
Choose a provider that fits your needs (low fees, strong investment options, good UX).
You must open the new HSA before initiating a transfer.
Step 2: Request a Transfer From Your New Provider
Most providers offer a Transfer of Assets (TOA) form online.
You’ll need:
Current HSA provider name
Account number
Transfer amount (full or partial)
Some providers allow partial transfers if you want to keep the old account open.
Step 3: Wait for the Transfer to Complete
The process typically takes 2–6 weeks.
During this time:
Avoid making transactions in the old HSA
Watch for liquidation of investments (if applicable)
Step 4: Confirm Funds Arrived
Once the transfer is complete:
Verify balances
Reinvest funds if needed
Check for transfer or closing fees
Are There Fees to Transfer an HSA?
Yes, sometimes.
Common fees include:
Transfer fee: $20–$50
Account closure fee
Investment liquidation fees
Your new provider rarely charges a fee, but the old one might. Even so, switching can still make sense if you’ll save more long-term.
Will Transferring My HSA Trigger Taxes?
No, as long as:
You use a trustee-to-trustee transfer or
You complete a rollover within 60 days
If you miss the 60-day deadline or redeposit less than the full amount, the IRS will treat it as a taxable distribution plus a 20% penalty (if under age 65).
Can I Transfer Only Part of My HSA?
Yes—with a trustee-to-trustee transfer.
Partial transfers are useful if:
You want to test a new provider
Your employer requires a minimum balance
You want to keep payroll contributions flowing
Common Mistakes to Avoid
❌ Cashing out your HSA instead of transferring
❌ Missing the 60-day rollover deadline
❌ Doing more than one rollover in 12 months
❌ Forgetting to reinvest transferred funds
❌ Closing your old HSA before the transfer completes
Frequently Asked Questions
Can I transfer my HSA even if I changed jobs?
Yes. HSAs are fully portable and stay with you regardless of employment.
Can I transfer an HSA if I’m no longer eligible to contribute?
Yes. You can still transfer and invest existing funds even if you’re no longer on an HDHP.
How often can I move my HSA?
Trustee-to-trustee transfers: Unlimited
Rollovers: Once per 12 months
Final Thoughts
Transferring your existing HSA to a new provider is a smart way to reduce fees, gain better investment options, and take more control of your healthcare savings. For most people, a trustee-to-trustee transfer is the safest, easiest, and most tax-efficient option.
If you’re unhappy with your current HSA provider, there’s no reason to stay stuck—your money can move with you.
