More On HSAs

President Bush today signed the Tax Relief and Health Care Act of 2006.

"The bill’s provisions include the following:

1. It allows HSAs to be funded with one-time transfers from Individual Retirement Accounts (IRAs), enabling individuals to benefit from the tax advantages provided by HSAs when paying for medical expenses.

2. It allows individuals to make the maximum annual contribution to HSAs at any point in a given year; previously, they were only allowed to make prorated contributions based on their enrollment dates.

3. It allows individuals to contribute amounts that equal the annual contribution limit, regardless of their plans’ deductible limits; previously, they were only allowed to contribute amounts equaling their deductibles.

4. It allows funding for HSAs to come from a health reimbursement arrangement (HRA) or a flexible spending account (FSA) in the form of a one-time rollover.

5. It allows employees with lesser earnings to receive higher contributions from their employers into HSAs."

Read the article here on insurancenewsnet.com.