Flexible Savings Arrangements for a Healthy Robust America Act
Summary
What This Bill Does
The Flexible Savings Arrangements for a Healthy Robust America Act updates Internal Revenue Code rules for health flexible spending arrangements, health reimbursement arrangements, and health savings accounts. It defines a qualified HSA distribution as a direct transfer from an employee's FSA or HRA to the employee's HSA when the employee establishes high-deductible health plan coverage after a significant period without that coverage. The transfer cannot exceed the section 125(i)(1) FSA dollar limit, doubled for family high-deductible coverage. The bill coordinates HSA contribution rules, FSA/HRA eligibility rules, and W-2 reporting so transferred amounts do not improperly disqualify HSA eligibility or distort wage reporting. The amendments apply to distributions made after December 31, 2025.
Who Benefits and How
Employees moving into high-deductible health plans benefit because unused FSA or HRA amounts can be moved into an HSA instead of being stranded. Families with high-deductible coverage benefit from a doubled transfer limit tied to the FSA dollar cap. Employers offering FSAs or HRAs benefit from a clearer conversion option when employees change health coverage. HSA administrators benefit from a statutory definition that clarifies which FSA or HRA transfers can be accepted.
Who Bears the Burden and How
Employer benefit administrators must update plan terms, payroll systems, and W-2 reporting for qualified HSA distributions. FSA administrators must track eligible balances, direct transfers, and post-distribution plan-year terms. HRA administrators must coordinate transfer limits and high-deductible-plan eligibility rules. The Internal Revenue Service must administer the new definition, contribution exclusion, and reporting instructions after 2025.
Key Provisions
- Creates a qualified HSA distribution from an employee's FSA or HRA to the employee's HSA.
- Limits transfers to the section 125 FSA dollar amount, doubled for family high-deductible coverage.
- Modifies HSA contribution and eligibility rules so qualifying transfers do not disqualify coverage.
- Requires W-2 reporting of qualified HSA distributions for transfers made after December 31, 2025.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Allows employees moving into high-deductible health plan coverage to transfer qualified FSA or HRA balances directly into an HSA, within dollar limits, for distributions after 2025.
Key Policy Areas
Tax, Health Savings Accounts, Employee Benefits
Primary Purpose
Allows employees moving into high-deductible health plan coverage to transfer qualified FSA or HRA balances directly into an HSA, within dollar limits, for distributions after 2025.
Policy Domains
Resolution provisions
Identified Gains
- Employees moving into high-deductible plans
- Families with high-deductible coverage
- Employers offering FSAs
- HSA administrators
Identified Costs
- Employer benefit administrators
- FSA administrators
- HRA administrators
- Internal Revenue Service
Sponsors
Legislative Progress
In CommitteeMr. Bean of Florida (for himself, Mr. Panetta, and Mr. …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Employees moving into high-deductible plans, Families with high-deductible coverage
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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