HSA Ed.com annouces, Treasury and IRS Rollover Guidance for FSA/HRA

HSA Ed.com, "America's #1 Educational Resource for Health Savings Accounts," annouces that today, the U.S. Treasury and Internal Revenue Service today issued guidance regarding how employers can rollover their health Flexible Spending Arrangements (health FSAs) and Health Reimbursement Arrangements (HRAs) to Health Savings Accounts (HSAs) for their employees.

Lake Geneva, WI (PRWeb) February 15, 2007--HSA Ed.com, "America's #1 Educational Resource for Health Savings Accounts," annouces that today, the U.S. Treasury and Internal Revenue Service issued guidance regarding how employers can rollover unspent funds in their employees' health Flexible Spending Arrangements (health FSAs) and Health Reimbursement Arrangements (HRAs) to Health Savings Accounts (HSAs), as permitted by the Tax Relief and Health Care Act of 2006 (Public Law No. 109-432). This law, enacted December 20, 2006, allows employers to amend their health FSAs or HRAs for a one-time roll over to an HSAs by 2012.

However, the guidance released today does not cover any of the other provisions enacted in P.L. 109-432. Treasury intends to issue additional guidance soon on these remaining provisions.

The guidance released today clarifies the requirements for making rollovers from health FSAs and HRAs, including:

1. The rollover must be made directly to the custodian or trustee of the HSA.

2. An HRA or health FSA with a grace period (up through March 15) must be amended and a rollover selected by an employee before year end. The balance amount must be transferred to the HSA by March 15 of the following year.

3. Under a special transition rule for transfers for 2006, the amendment, election and transfer must take place by March 15, 2007.

The guidance provides 13 examples to help clarify the details of the guidance.

To download a complete copy please visit http://www.HSAEd.com