H.R. 2667

[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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