Health Opportunity Patient Empowerment (HOPE) Act

Expanded Health Opportunity Patient Empowerment Act of 2006 Disclosure Statement Addendum—In response to the Health Opportunity Patient Empowerment (HOPE) Act of 2006, Wolters Kluwer Financial Services is providing an expanded Health Opportunity Patient Empowerment Act of 2006 Disclosure Statement Addendum for use by IRA custodians/trustees that use Wolters Kluwer Financial Services' IRA agreements. The Addendum applies to traditional and Roth IRAs (not including SEP IRAs). The Addendum updates specific areas of our existing IRA Disclosure Statements and summarizes the new rule associated with the HOPE Act. The Addendum helps to inform IRA owners of the once-in-a-lifetime tax-free distribution now available from a traditional or Roth IRA to fund a Health Savings Account (HSA). A financial organization can use the Addendum free of charge under a limited license agreement with Wolters Kluwer Financial Services.

Recommended Action Steps

Financial institutions that offer HSAs should communicate these changes as soon as possible to their staff and account owners. Many HSA forms and education materials will be revised to include the updated language. We recommend you check with your document provider to find out which documents are available. For financial organizations that have account owners wishing to take advantage of the once-in-a-lifetime tax-free distribution from an IRA to fund an HSA, a HOPE addendum is available at no cost on ComplianceHeadquarters.com. The HOPE addendum should also be used when a new traditional or Roth IRA is established. Financial institutions that do not currently offer HSAs may want to take advantage of the added benefits these accounts provide to their business.