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Transferring Funds from Flexible Health Accounts to HSA Savings Accounts

New rules allow transferring unused funds from Flexible Spending Accounts (FSA) or Health Reimbursement Arrangements (HRA) directly to Health Savings Accounts (HSA). This is possible when an individual enrolls in a high-deductible health plan. This change can help citizens better manage their healthcare savings.
Key points
Ability to transfer money from FSA/HRA accounts to an HSA if you start using a high-deductible health plan.
There is a limit on the amount that can be transferred, depending on the type of coverage and unused funds from the previous year.
Information about transferred funds will be shown on your W-2 tax form, simplifying tax reporting.
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Additional Information
Qualified Health Savings Account Distribution Act of 2021
Print number: S 2113
Sponsor: Sen. Sasse, Ben [R-NE]
Process start date: 2021-06-17