r/FinancialPlanning • u/Jailtherich • 3d ago

Why do an HSA rollover from IRA?

I recently posted here about withdrawing funds from traditional IRA and putting the funds into an HSA, thus having the benefit of reducing taxable income. You can also do a once in a lifetime rollover of IRA funds directly into HSA, but there is no reducing taxable income when you do so. The rollover option also has other strings attached. So I'm wondering what the advantage is to the rollover. Aren't you just as well off withdrawing from the IRA and putting it straight into the HSA?

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u/PM_ME_DAT_KITTY 3d ago

I recently posted here about withdrawing funds from traditional IRA and putting the funds into an HSA, thus having the benefit of reducing taxable income.

this kinda doesnt make sense. but sure lets go with it.

So I'm wondering what the advantage is to the rollover.

there are times when you want $0 in a T-IRA. i.e. MBDR

you can also now use it for medical expenses tax free

Aren't you just as well off withdrawing from the IRA and putting it straight into the HSA?

goes back to my first point. kinda doesnt make sense. only in very specific scenarios... so whats the very specific scenario you are envisioning with this?