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FSA rollover into HSA


SLuskin

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Has anyone heard of a rollover from an FSA to an HSA that does NOT have to follow the rule of: the lesser of the balance on September 21, 2006 or current plan year end balance?

Client is saying the 2006 requirement was done away with.

The 2011 Publication 969 still contains that requirement.

Thanks.

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I have not heard of it, but, just to make sure that you understand your client (and can correct them, if necessary) I suggest that you ask them to state where they saw that the 2006 requirement was done away with. Get on the same page and trend of thought.

I recently had someone who claimed that the change of status requirements for election changes 1.125-4 had been done away with because they did not see them in the 2007 Prop. Regs. Since they pointed out where it was not, I was able to go directly to new 1.125-2 (a)(4) and the preamble to show them that 1.125-4 was still in effect and to explain that the 2007 Prop. Regs does not affect the older Final Regs.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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I have not heard of it, but, just to make sure that you understand your client (and can correct them, if necessary) I suggest that you ask them to state where they saw that the 2006 requirement was done away with. Get on the same page and trend of thought.

I recently had someone who claimed that the change of status requirements for election changes 1.125-4 had been done away with because they did not see them in the 2007 Prop. Regs. Since they pointed out where it was not, I was able to go directly to new 1.125-2 (a)(4) and the preamble to show them that 1.125-4 was still in effect and to explain that the 2007 Prop. Regs does not affect the older Final Regs.

We are on the same page, George. I sent her what I had and then asked her to show me where she was looking. The 2011 version of Publication 969 is the most recent one. She has alot vested in being correct because she had everyone do that at her former employer.

I would actually not mind her being correct either, as we could use that for marketing if it were true.

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  • 3 weeks later...
Guest ConnieLawson

Yes,

We had a plan that went from an FSA to HSA and transferred all of their money from the FSA to the HSA in mid year and by irs rules per a cpa office and the insurance company this can be done one time only!

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