If you have funds with another HSA provider and would like to transfer the balance to your Lively HSA, you can do so via one of two options: a “Direct Rollover” transfer OR a “Trustee-to-Trustee” transfer.
HSA account holders that would like to also transfer investments will need to complete an “In-Kind” transfer before transferring the account’s cash balance.
Transfer processes have varying timelines, account holder responsibilities, and limitations. Learn more about each type below to select the best transfer option for you.
Direct Rollover Transfer
A Direct Rollover requires the account holder to withdraw funds from their HSA in the form of a check or ACH transfer, momentarily take possession of the funds, and transfer (deposit) those funds with a new HSA provider. The account holder has 60 days from withdrawal to deposit the funds with a new HSA provider; failure to comply will result in a 20% income tax penalty.
This type of transfer can only be completed once in a 365 day period; and is best for account holders that want direct control of the transfer and need access to funds quickly. Learn about the process here.
During a trustee-to-trustee transfer, the existing HSA provider makes a direct transfer to the new HSA provider via a paper check. The account holder is only responsible for initiating the request and never takes possession of the funds.
This type of transfer is best for account holders that do not need to access funds quickly. The trustee-to-trustee process can take up to 4-6 weeks and may not provide exact transfer updates throughout. Learn about the process here.
In-Kind Transfers (Investments Only)
In-Kind transfers are completed when the account holder has existing HSA investments and wants to transfer investments over to the new HSA provider. Depending on the existing HSA provider,1 you may need to liquidate your investments first before transferring the cash balance.
If you have investments and remaining funds in your account, we ask that you start with transferring investments before transferring remaining balances. Learn more about the In-Kind Transfer process here.
1 Only a select list of HSA providers facilitates In-Kind Transfers. Learn more.Updated: