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Text of IRS Notice 2005-86 Allowing Health FSA (Cafeteria Plan) Amendments to Liberalize Coverage (PDF)
Internal Revenue Service [IRS] 
[Official Guidance] Nov. 23, 2005
7 pages. An individual participating in a health FSA who is covered by the grace period generally is not eligible to contribute to an HSA until the first day of the first month following the end of the grace period. The notice allows an employer to amend the cafeteria plan document to enable the participant to become HSA-eligible during the grace period.
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