Bill > HR74

This bill, known as the "Freedom for Families Act," proposes two significant changes to Health Savings Accounts (HSAs) and their tax treatment. First, the bill would allow tax-advantaged distributions from HSAs during periods of qualified caregiving, which includes situations covered under the Family and Medical Leave Act, such as family or medical leave. This means individuals could withdraw funds from their HSA without incurring tax penalties during these specified leave periods. Second, the bill would eliminate the requirement that HSA holders must be enrolled in a high-deductible health plan, effectively making HSAs more accessible. Additionally, the bill increases the annual contribution limit for HSAs to $9,000 for individual accounts and $18,000 for joint returns, removing the previous complex calculation method for determining contribution limits. These changes aim to provide more flexibility for individuals managing healthcare and family care expenses by making HSA funds more readily available and expanding the accounts' eligibility requirements. The proposed amendments would take effect for taxable years beginning after the date of the Act's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/74/all-info