Health Opportunity Patient Empowerment Act of 2006

[Guest afreeling]

I am questioning the new law that was passed for HSA specifically regarding the rollover provision from the FSA to the HSA. (1) Does anyone know if this is an option of the Employer/Plan Administrator to allow for the rollover (similar to the Grace Period for the FSA where the Plan Document must specify that the Plan allows for it), or is it something that the Plan Administrator must allow for? (2) If the Participant were to rollover remaining funds from an FSA to a HSA, does the annual election get lowered so the employer does not run the risk associated with Uniform Coverage? Please let me know your thoughts. Thank you everyone!

[Jacmo]

1) It is something that the plan administrator must allow for, i.e., include as a now legal, mandated option (assuming they have an FSA grace period)

2) The rollover amount does not count toward the allowable HSA max.

3) The FSA rollover amount has no impact on the original annual election. It's simply an additional option (call it an "eligible expense"?) for remaining year end balances.