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Friday, May 16, 2008 |  |
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HSA Update
New HSA Changes for 2007, resulting from new law!!!
In December, 2006, Congress passed and President Bush signed into law The Tax Relief and Health Care Act of 2006 (P.L. 109-432).
The following provisions were included designed to improve Health Savings Accounts (HSAs):
- FSA and HRA terminations to fund HSAs.
- Allows rollovers from health FSAs and HRAs into HSAs.
- Certain FSA coverage treated as disregarded coverage.
- Repeal of annual plan deductible limitation on HSA contributions.
- Modification of cost-of-living adjustment.
- Expanded contribution limitation for part-year coverage.
- Modification of employer comparable contribution requirements for contributions made to nonhighly compensated employees.
- One-time rollovers from IRAs into HSAs.
Click here to view a more detailed summary (pp. 6-7), reported from the US Senate Committee on Finance.
Click here to view a helpful overview on the 2007 HSA changes from AHIP.
Click here to view the legislative text of HSA provisions (Division A, Title III).
Click here to view technical explanation of HSA provisions, reported from the Joint Committee on Taxation.
Click here to view new U.S. Department of Treasury’s NEW guidelines
Click here to view the U.S. Department of Treasury’s HSA Home Page.
Click here to view helpful charts that review the new HSA provisions.
Click here to go to NAHU's HSA main issue page.