TaxNewsFlash-Exempt Organizations

June 25, 2008
No. 2008-56

PRINTABLE VERSION

IRS Provides Additional Guidance on Health Savings Accounts

The IRS today released an advance copy of Notice 2008-59 which provides in question-and-answer format additional guidance on Health Savings Accounts (HSAs).

Background

Section 223 provides that eligible individuals can establish Health Savings Accounts (HSAs). Earlier IRS guidance (Notice 2004-2 and Notice 2004-50) provided Information on HSAs in question-and-answer format.

Today’s notice addresses over 40 additional questions relating to HSAs, including definitions of who is an eligible individual; issues relating to high-deductible health plans; what are the contribution limits and rules for distributions from an HSA: prohibited transactions; and how to establish and administer an HSA.

For an electronic version of today’s 28-page notice: Notice 2008-59

Notice 2008-59 will appear in a future edition of the Internal Revenue Bulletin.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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