Are rollover contributions from HRAs and health FSAs permitted?
Yes. Rollover contributions from HRAs and health FSAs are permitted. The amounts rolled over to HSAs from FSAs or HRAs are over and above the amounts allowed as annual contributions. The maximum contribution is the balance in the FSA or HRA as of September 21, 2006, or if less, the balance as of the date of the transfer. The provision is limited to one distribution with respect to each health FSA or HRA of the individual. Penalties may apply if HDHP coverage does not continue for 12 months.
