IRS Issues Complex Guidance On Rollovers To HSAs

Law360, New York (March 21, 2007, 12:00 AM EDT) -- The IRS recently issued Notice 200722, which provides guidance on new rollover rules applicable to Health Savings Accounts (HSAs) under the Tax Relief and Health Care Act of 2006.

The notice is complicated and full of traps for the unwary, and it offers the “reward” of double taxation for mistakes.

The notice also offers a transition rule for 2006 that expires on March 15, 2007 and is, for a number of reasons, of very limited use for employers and participants.

The notice implements one part of...
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