The Health Opportunity Patient Empowerment Act of 2006 allows a qualified individual to move money using a trustee-to-trustee transfer from an IRA to a health savings account (HSA) without paying income taxes or penalties on the IRA distribution.

On June 3, 2008, the IRS released Notice 2008-51 to provide additional guidance on implementation of this new one-time tax- and penalty-free transfer from an IRA to an HSA. The guidance contains 10 good examples regarding implementation; we’ll cover one below to give ... Log in to view full article.