Question: F.D. in Winton Woods: I have two HSAs. Can I combine them?

A: The short answer is yes. Just as the IRS lets you combine other kinds of accounts with similar tax structures (think a 401(k) and IRA), you’re allowed to roll one Health Savings Account (HSA) into another.

You have two different options to accomplish this. One is an actual rollover in which you instruct one of the HSA providers to send you a check for the money in your account. Then, it’s on you to deposit that money into the other HSA within 60 days (otherwise, you’ll face penalties). The other option is a ‘trustee-to-trustee’ transfer in which you tell one of the providers to transfer your money to the other provider. In this case, you’re taken out of the equation – you don’t have to be involved with the transfer process at all. (We typically prefer this option since there’s less room for error!)

And here are just a few more important notes: You’re limited to one HSA rollover every 12 months; but there’s an unlimited cap on the number of trustee-to-trustee transfers. Additionally, if your HSA funds are sitting in some kind of actual investment (AKA, not cash), you’ll have to check the provider’s rules about transfers – not all allow a transfer in this circumstance.

Here's the Allworth Advice: Consolidating multiple HSAs is generally a good idea simply for the sake of organization – it’s obviously much easier to keep track of one account rather than two. However, just make sure you understand what kind of transfer you’re initiating so you don’t get caught off-guard by confusing rules or penalties.

Q: K.L. and R.L. from Kenton County: Our daughter is going to be starting college in early 2023. Do we need to buy any kind of insurance policy for her? We’re just thinking about all that could happen in a dorm.

A: You never know what can happen on a college campus, right? The first step here is to check your own homeowner’s policy. Some policies actually automatically have what’s called ‘off-premises’ coverage, which would cover her dorm room. But not all policies do. And even if your policy does include this coverage, it might not be a whole lot – typically, it’s less than 10% of your policy’s benefit limit. That means, for example, if your policy covers up to $50,000 in losses, then your daughter’s belongings would only be covered up to $5,000.

So, with that said, you could consider buying a renter’s insurance policy for your daughter. This policy would cover the replacement cost of her things – laptop, phone, clothes, furniture, etc. – in the event of specific kinds of loss (like theft or fire). It also typically includes liability coverage and additional living expenses coverage. And the good news? It’s usually pretty inexpensive. According to the Insurance Information Institute, as recently as 2019, the average annual premium was just $174. (There is also something more specific called a dorm insurance policy that has a similarly low annual premium. It’s basically personal property coverage without the liability coverage or additional living expense coverage.)

The Allworth Advice is to speak with your insurance agent to understand the kind of coverage you have now, and, depending on your family’s needs and concerns, what other options he or she might recommend.

Every week, Allworth Financial’s Amy Wagner and Steve Sprovach answer your questions. If you, a friend, or someone in your family has a money issue or problem, feel free to send those questions to yourmoney@enquirer.com.

Responses are for informational purposes only and individuals should consider whether any general recommendation in these responses are suitable for their particular circumstances based on investment objectives, financial situation and needs. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing, including a tax advisor and/or attorney. Retirement planning services offered through Allworth Financial a SEC Registered Investment Advisor. Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. Visit allworthfinancial.com or call (513) 469-7500

This article originally appeared on Cincinnati Enquirer: Allworth Advice: Can I combine my HSAs?