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Transferring Funds from Flexible Spending to Health Savings Accounts

New rules allow individuals to transfer unused funds from Health Flexible Spending Arrangements (FSA) or Health Reimbursement Arrangements (HRA) directly to Health Savings Accounts (HSA). This aims to simplify healthcare finance management, especially when transitioning to high-deductible health plans. These changes could help citizens better utilize their accumulated healthcare funds.
Key points
Ability to transfer funds from FSA and HRA to an HSA when enrolling in a high-deductible health plan.
There is a dollar limit on the amount that can be transferred, depending on the type of coverage.
Information about transferred funds will be reported on your W-2 tax form.
These changes apply to distributions made after December 31, 2023.
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Additional Information
Print number: 118_HR_5317
Sponsor: Rep. Steel, Michelle [R-CA-45]
Process start date: 2023-08-29
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement directly to a health savings account in connection with establishing coverage under a high deductible health plan.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_5317.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-08-29.

What are the main provisions?

Key points include:

  • Ability to transfer funds from FSA and HRA to an HSA when enrolling in a high-deductible health plan.
  • There is a dollar limit on the amount that can be transferred, depending on the type of coverage.
  • Information about transferred funds will be reported on your W-2 tax form.
  • These changes apply to distributions made after December 31, 2023.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Steel, Michelle [R-CA-45].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Health.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Health