- The employer must have amended the FSA or HRA to allow for qualified HSA distributions to any qualified individual by year-end;
- The employee must elect the rollover by year-end;
- The year-end balance must be frozen;
- The funds must be transferred within two-and-a-half months after the end of the plan year;
- The transfer must result in a zero balance in the FSA or HRA; and
- The individual must remain eligible to make HSA contributions for the month of the rollover and the next twelve months.
For more information regarding these changes, be sure to speak to your tax advisor.
Keeping your Business N Synergy
Brian N. Stovall
This list of HSA rollover rules does not mention the Sept. 21, 2006balance rule. No one can roll more than their balance in an FSA as of that date. People covered by an FSA in 2007 but not 2006 have a BIG problem.
Thanks for the update. Here is additional news regarding FSA and technology. Enjoy.
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