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Bill > AB2384


CA AB2384

CA AB2384
Income tax: health savings accounts.


summary

Introduced
02/18/2020
In Committee
02/24/2020
Crossed Over
Passed
Dead
08/31/2020

Introduced Session

2019-2020 Regular Session

Bill Summary

An act to amend Sections 17072, 17131.4, 17131.5, 17215.1, and 17215.4 of, and to add Section 17217 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

AI Summary

This bill allows a deduction in computing adjusted gross income for contributions to health savings accounts (HSAs) for taxable years beginning on or after January 1, 2020 and before January 1, 2025. It also provides related conformity to federal law regarding the allowance of rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, or health reimbursement accounts to an HSA, and penalties in connection with these provisions. The bill aims to encourage Californians to save for future health expenses and reduce health-related debt, while aligning California's tax treatment of HSAs with federal law. The Franchise Tax Board will report on performance indicators, such as the number and total amount of deductions allowed, to the Legislature every odd-numbered year during which the bill's provisions are in effect.

Committee Categories

Budget and Finance

Sponsors (4)

Last Action

In committee: Hearing postponed by committee. (on 03/17/2020)

bill text


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