MSA--Rollovers

[Felicia]

Is it permissible to "roll over" MSA monies that are not used by the end of the year into an IRA? If so, please provide cite(s). Thanks.

[papogi]

MSA distributions which are not for medical expenses under Section 213 are taxable income. There may also be a 15% penalty if the distributions are prior to Medicare eligibility, death or disability.