02/ 02/ 2007
Just as many small-business owners were making plans for 2007 benefits, President Bush signed a law passed just before the 109th Congress adjourned that provides significant enhancements to health savings accounts. NFIB supported the bill, a role recognized in a Washington Post story about "The Tax Relief and Health Care Act."
The bill makes HSAs more appealing by expanding contribution limits up to the policy's deductible amount. Employees now have a one-time opportunity to roll over unused funds from existing flexible spending accounts or health reimbursement accounts into their HSAs. And employers can make additional contributions for lower-paid workers. The legislation also allows employees to make full annual HSA contributions, regardless of when they gained coverage.
