IRS Allows A One-Time Transfer From Your IRA To Your HSA: Another Strategy To Reduce RMDs

by Retired Investor | originally posted on Seeking Alpha

With concerns that income tax rates in the United States could climb soon or in 2026 when the current schedule reverts to the 2017 brackets, maybe inflation-adjusted, thinking about what one's taxable income could be once their RMDs start, is an investment strategy worth exploring.

My first article, Cutting Taxes By Converting To A Roth: An Analysis, showed the calculations and variables that affect the determination of how long it will take the converter to break even as they pay some taxes earlier than needed.

My second one, The Tax Code Provides A Strategy IRA Converters Should Consider: QCDs, is useful to IRA owners over 70.5 that support valid charities. Its big advantage over Conversions is there is no future breakeven age to calculate or reach.

This one covers an option I wasn't aware of when I could have used it to fund my HSA. So what is an HSA?