HSA Legislation

Thanks to key legislative improvements enacted in late 2006, millions more consumers have access to flexible health savings accounts (HSAs) than ever before. This Congressional action increased the contribution limits for all individuals, eliminated contribution penalties for mid-year enrollees, and allowed consumers the ability to roll funds from existing Health Reimbursement Arrangements (HRAs), Flexible Spending Accounts (FSAs) and Individual Retirement Accounts (IRSa) into their HSA account

 

Investing and withdrawing
Funds in an HSA can be invested in a manner similar to funds in an Individual Retirement Account (IRA) or 401K. While funds used for medical expenses are never taxed, investment earnings used for non-medical expenses are sheltered from taxation until the money is withdrawn, though funds can also be sheltered even then, with proper planning. While HSAs can be "rolled over" from fund to fund, an HSA cannot be rolled into an IRA or a 401(k).

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