Us Congress 2023-2024 Regular Session

Us Congress House Bill HB107

Introduced
1/9/23  

Caption

Freedom for Families Act This bill modifies requirements for health savings accounts (HSAs) to (1) exclude from gross income HSA distributions paid or distributed during a period of qualified caregiving, (2) allow participation in an HSA without enrollment in a high deductible health plan, and (3) increase the contribution limit for HSAs.

Impact

The bill would amend existing tax laws, specifically the criteria under which distributions from HSAs can be made. By allowing distributions for qualified caregiving, it potentially creates a safety net for families during critical times when they may be financially strained due to medical needs or family responsibilities. Furthermore, it eliminates the requirement for individuals to be enrolled in high-deductible health plans to participate in HSAs, thereby making HSAs more accessible to a broader population. Additionally, it proposes increasing the contribution limit to $9,000, which would enable families to save more for medical-related expenses.

Summary

House Bill 107, also known as the 'Freedom for Families Act', proposes significant amendments to the Internal Revenue Code of 1986 concerning health savings accounts (HSAs). The primary objective of this bill is to allow tax-advantaged distributions from HSAs for individuals taking family or medical leave, effectively broadening the scope of what qualifies for tax exclusion. This change aims to alleviate some of the financial burdens on caregivers by allowing them to utilize their HSA funds without facing tax penalties during their caregiving periods.

Contention

The amendments proposed in HB 107 might face diverse opinions, particularly concerning the increased contribution limits and the removal of the requirement for high deductible plans. Supporters argue that these changes expand the utility of HSAs, allowing families greater flexibility and financial relief when faced with caregiving responsibilities. In contrast, critics may raise concerns about the potential impact on tax revenues and the implications of allowing higher contributions from individuals who may not need to rely on high-deductible plans. The overall discourse surrounding the bill is likely to address issues of caregiver support, tax implications, and broader health benefits accessibility.

Companion Bills

No companion bills found.

Previously Filed As

US HB74

Freedom for Families ActThis bill allows individuals to establish and contribute to a health savings account (HSA) without being enrolled in a high-deductible health plan (HDHP), increases HSA contribution limits, and allows tax-free distributions from an HSA during a period of qualified caregiving.Under current law, individuals may establish and contribute to an HSA if they are covered under an HSA-eligible HDHP. For 2025, HSA contributions are limited to $4,300 for self-only coverage or $8,550 for family coverage (adjusted annually). Individuals who are at least 55 years old may make an additional HSA contribution of up to $1,000 per year. Further, under current law, HSA distributions are tax-free if used to pay for qualified medical expenses. The bill eliminates the HDHP coverage requirement for purposes of an HSA.The bill also increases the HSA annual contribution limit to $9,000 for individuals or $18,000 for joint filers (adjusted annually) and eliminates the additional contribution for individuals who are at least 55 years old.Finally, the bill excludes HSA distributions during a period of qualified caregiving from gross income. The bill defines period of qualified caregiving as any period during which an individual is on leave or not employed due tothe birth or adoption of a child;placement of a foster child;caring for a family member with a serious health condition;an inability to work due to a serious health condition; orcertain emergencies related to a spouse, child, or parent on covered active duty with the Armed Forces. 

US HB313

Small Business Emergency Savings Accounts Act of 2023 This bill allows a new tax deduction from gross income for amounts paid into a small business emergency savings account. Such savings accounts are established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster loss replacement expenses, disaster recovery operations expenses, and public health emergency expenses.

US HB312

Emergency Savings Accounts Act of 2023 This bill allows an individual taxpayer occupying a residence a deduction from gross income for up to $5,000 of amounts paid into such taxpayer's emergency savings account. The bill defines emergency savings account as an account established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster mitigation expenses, disaster recovery expenses, public health emergency expenses, and unemployment-related expenses.

US HB5317

To amend the Internal Revenue Code of 1986 to allow distributions from a health flexible spending arrangement or health reimbursement arrangement directly to a health savings account in connection with establishing coverage under a high deductible health plan.

US A4739

Allows distributions from NJBEST account to Roth IRA as qualified withdrawals and excludes such distributions from gross income tax.

US S3593

Allows distributions from NJBEST account to Roth IRA as qualified withdrawals and excludes such distributions from gross income tax.

US HB7693

To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.

US HB1769

Healthcare Freedom Act of 2023

US HB2436

To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.

US HB9141

IVF with HSAs Act of 2024 Increasing Value for Families with HSAs Act of 2024

Similar Bills

No similar bills found.