Move HSA $ to Roth IRA?

[FutureInternist]

---

Members don't see this ad.

I have approximately 20,000 sitting in an HSA that I did not use for medical expenses already incurred.
Paid out of pocket at that time (gotta get them SWA points 😉).
The financial report I get from my work, something I didn't really pay attention to initially, seems to indicate that the HSA $ is NOT being invested in a Vanguard Target date fund (as the 403b & 457 are), and it's return was listed at something < 1%.
My understanding is that the date of the medical expense is not limited so I should be able to now take the money out.

With that in mind, it seems to make sense to withdraw the $ & open 2 IRAs (@ $ 5500 each, one for wife) & invest rest in child's 529.

Thoughts?

Thanks.

 

[SigmaFS]

Sounds like non-qualified HSA distribution subject to a 20% penalty and taxed as ordinary income. Ask HR what other HSA investment options are available.

 

[FutureInternist]

But if I use it to reimburse myself for previously paid (from personal funds) medical bills, then would that not qualify?

 

[SigmaFS]

Sorry, there's no deadline as to when you can reimbursement yourself. Just keep the receipts.

 

[FutureInternist]

👍

 

[ThoracicGuy]

But if I use it to reimburse myself for previously paid (from personal funds) medical bills, then would that not qualify?

You should be able to move to any hsa provider you want.

Unhappy With Your Company's Health Savings Account? Move It