Yes, you can roll over a balance from an Archer MSA to an HSA. This rollover contribution won’t count against you with the contribution limit, isn’t deductible, and won’t be included in your income.
Here’s a couple of things to keep in mind:
- Generally, any distribution from an Archer MSA that you roll over into another Archer MSA or an HSA isn’t taxable if you complete the rollover within 60 days.
- An Archer MSA and an HSA can only receive one rollover contribution during a 1-year period.
If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer isn’t considered a rollover. There is no limit on the number of these transfers.