To amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement directly to a health savings account in connection with establishing coverage under a high deductible health plan.
This bill would allow employees to transfer unused money from health flexible spending arrangements (FSAs) or health reimbursement arrangements (HRAs) directly into a health savings account (HSA) when they enroll in a high deductible health plan. Currently, FSAs and HRAs cannot easily fund HSAs due to tax restrictions. The change would affect workers who switch to high deductible health plans and would be capped at the annual FSA contribution limit, or double that amount for family coverage. The bill also requires employers to report these qualified HSA distributions on employee W-2 forms. The changes would take effect for distributions made after December 31, 2023.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.