[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2667 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2667
To amend the Internal Revenue Code of 1986 to allow distributions from
a health flexible spending arrangement or health reimbursement
arrangement directly to a health savings account in connection with
establishing coverage under a high deductible health plan.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2025
Mr. Bean of Florida (for himself, Mr. Panetta, and Mr. Crenshaw)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow distributions from
a health flexible spending arrangement or health reimbursement
arrangement directly to a health savings account in connection with
establishing coverage under a high deductible health plan.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Flexible Savings Arrangements for a
Healthy Robust America Act''.
SEC. 2. FSA AND HRA TERMINATIONS OR CONVERSIONS TO FUND HSAS.
(a) In General.--Section 106(e)(2) of the Internal Revenue Code of
1986 is amended to read as follows:
``(2) Qualified hsa distribution.--For purposes of this
subsection--
``(A) In general.--The term `qualified HSA
distribution' means, with respect to any employee, a
distribution from a health flexible spending
arrangement or health reimbursement arrangement of such
employee directly to a health savings account of such
employee if--
``(i) such distribution is made in
connection with such employee establishing
coverage under a high deductible health plan
(as defined in section 223(c)(2)) after a
significant period of not having such coverage,
and
``(ii) such arrangement is described in
section 223(c)(1)(B)(iii) with respect to the
portion of the plan year after such
distribution is made.
``(B) Dollar limitation.--The aggregate amount of
distributions from health flexible spending
arrangements and health reimbursement arrangements of
any employee which may be treated as qualified HSA
distributions in connection with an establishment of
coverage described in subparagraph (A)(i) shall not
exceed the dollar amount in effect under section
125(i)(1) (twice such amount in the case of coverage
which is described in section 223(b)(2)(B)).''.
(b) Partial Reduction of Limitation on Deductible HSA
Contributions.--Section 223(b)(4) of such Code is amended by striking
``and'' at the end of subparagraph (B), by striking the period at the
end of subparagraph (C) and inserting ``, and'', and by inserting after
subparagraph (C) the following new subparagraph:
``(D) so much of any qualified HSA distribution (as
defined in section 106(e)(2)) made to a health savings
account of such individual during the taxable year as
does not exceed the aggregate increases in the balance
of the arrangement from which such distribution is made
which occur during the portion of the plan year which
precedes such distribution (other than any balance
carried over to such plan year and determined without
regard to any decrease in such balance during such
portion of the plan year).''.
(c) Conversion to HSA-Compatible Arrangement for Remainder of Plan
Year.--Section 223(c)(1)(B)(iii) of such Code is amended to read as
follows:
``(iii) coverage under a health flexible
spending arrangement or health reimbursement
arrangement for the portion of the plan year
after a qualified HSA distribution (as defined
in section 106(e)(2) determined without regard
to subparagraph (A)(ii) thereof) is made, if
the terms of such arrangement which apply for
such portion of the plan year are such that, if
such terms applied for the entire plan year,
then such arrangement would not be taken into
account under subparagraph (A)(ii) of this
paragraph for such plan year.''.
(d) Inclusion of Qualified HSA Distributions on W-2.--
(1) In general.--Section 6051(a) of such Code is amended by
striking ``and'' at the end of paragraph (16), by striking the
period at the end of paragraph (17) and inserting ``, and'',
and by inserting after paragraph (17) the following new
paragraph:
``(18) the amount of any qualified HSA distribution (as
defined in section 106(e)(2)) with respect to such employee.''.
(2) Conforming amendment.--Section 6051(a)(12) of such Code
is amended by inserting ``(other than any qualified HSA
distribution, as defined in section 106(e)(2))'' before the
comma at the end.
(e) Effective Date.--The amendments made by this section shall
apply to distributions made after December 31, 2025, in taxable years
ending after such date.
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