What are the rules regarding the rollover of IRA funds into an HSA?

Many people refer to this as an “IRA rollover”, but technically a rollover is when the individual receives the custody of the funds and they must redeposit the funds to a qualified custodian within 60 days. This type of rollover is not allowed. Instead, the IRS requires IRA funds to be processed as a trustee-to-trustee transfer and refers to these transfers as Qualified HSA Funding Distributions. An individual is allowed a once per lifetime, tax-free Qualified HSA Funding Distribution of IRA funds into an HSA if certain conditions are satisfied: