January 9, 2007
IRS To Issue Guidance on New HSA Rules
We recently provided a client alert regarding the new HSA rules passed by Congress late last year. In response to an informal question we posed to the IRS last week regarding the one-time HSA distribution from a health FSA (i.e., health FSA rollovers) authorized under the new rules, the IRS responded that it is finishing up guidance on the issue. The guidance reportedly will address some of the other new rules contained in the legislation and may include transitional relief. The IRS hopes to issue the guidance in the next couple weeks.
We will alert you once the new guidance is issued.