119th (2025–2027)
H.R. 2667
This bill allows workers to transfer unused money from health flexible spending accounts (FSAs) or health reimbursement arrangements (HRAs) directly into health savings accounts (HSAs) when they enroll in a high-deductible health plan after a gap in coverage. The transfer amount is capped at the annual FSA/HRA limit (or double that for family coverage), and workers must convert their remaining FSA or HRA to an HSA-compatible plan for the rest of the year. The legislation also requires employers to report these transfers on employee W-2 forms. The changes take effect for distributions made after December 31, 2025, and aim to give workers more flexibility in managing their healthcare savings accounts when switching to high-deductible plans.