<prompt> Human: Does anyone use some kind of scheme to transfer HSA money to a Roth IRA? My co-worker claims he transfers monthly all account balance over 1K from HSA into Roth IRA. Im certain he isnt lying, but perhaps he got some bad financial advice and is just failing to declare and take the 2037; unqualified expense hit.  <response>: He could have qualified medical expenses that he paid out of pocket, and then occasionally transfers that money to his Roth IT. Money is fungible. As long as he has the qualifying earned income and medical expenses, the method in which money is transferred out of one account and into the other does not matter, and a direct transfer could work.If hes just blindly transferring without qualifying medical expenses, thats a no-go. And while he might be able to get away with it for a long time, if the IRS takes a closer look, hes in trouble. 