Consolidating HSAs with Forma
If employees have an existing HSA with another provider, they can transfer it to Forma to consolidate their account balance and manage everything in one place.
There are two ways that employees can individually transfer their HSA to Forma:
- Trustee to trustee transfer
- Trustee to individual transfer (rollover)
Trustee to trustee transfer
To complete a trustee to trustee transfer:
- Employee downloads the HSA transfer of assets form.
- They’ll need to complete the entire form, including their Forma HSA account and routing numbers, which can be found on the HSA page in their Forma account.
- Employee sends the completed form to their previous custodian. They may reach out to your HR/Benefits Team for this information.
Note: Some custodians charge one-time closure fees or have specific instructions for transfers.
The previous custodian will place a temporary hold on the employee’s HSA during the fund transfer process. While the account is on hold, the funds won’t be accessible. Individual HSA transfers typically take about 6 weeks to complete.
Trustee to individual transfer
To complete a trustee to individual transfer:
- Employee reaches out to their HSA provider and requests to close their HSA account.
- HSA provider closes the account and mails the employee a check.
- The employee completes the HSA rollover contribution form and mails the check to Forma.
The employee has 60 days from the date of account closure to deposit the funds into another HSA. If not completed within this timeframe, the employee could be penalized by the IRS.
This method is considered a rollover and can only be done once every 12 months. Rollovers place a greater responsibility on the employee.
Expected completion of the individual HSA transfer is approximately 6 weeks.