Health Savings Account One Time Transfer From an Individual Retirement Plan( IRA)
Health Savings Account (HSA) is used along with a medical plan that is compatible with the Internal Revenue Guidelines.
Health Savings Account transfer (HSA) Alert New rules for Health Savings Accounts (HSAs) are in effect as of January 1, 2007. The new rules provide more flexibility for employers and consumers around HSAs. An overview, followed by a more detailed summary, is provided below and on the IRS.GOV website.
What’s New? Major features of the new rules include: A one time transfer from an Individual Retirement Account (IRA) to an HSA is permitted. A one time rollover from a Flexible Spending Account (FSA) and/or Health Reimbursement Arrangement (HRA) to an HSA is permitted. The Health FSA grace period no longer impacts HSA eligibility, based on certain conditions.
The annual contribution limitations are no longer based on the lesser of the HDHP deductible or IRS limit. Contributions are no longer required to be pro-rated when an individual enrolls in an HDHP mid year under certain conditions.
Cost of living adjustments will be based on the consumer price index and published by June 1 of the prior year the adjustments are effective. When employers contribute to an employee’s HSA (via the employee benefits program), they may make greater contributions outside of a Section 125 cafeteria plan for non-highly compensated employees without violating the HSA comparability rule. Read More . The HSA account help you to manage health care cost