I
119THCONGRESS
1
STSESSION H. R. 74
To amend the Internal Revenue Code of 1986 to allow for tax-advantaged
distributions from health savings accounts during family or medical leave,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY3, 2025
Mr. B
IGGSof Arizona (for himself and Mr. BURLISON) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow for
tax-advantaged distributions from health savings ac-
counts during family or medical leave, and for other
purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Freedom for Families 4
Act’’. 5
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SEC. 2. DISTRIBUTIONS FROM HEALTH SAVINGS ACCOUNTS 1
DURING PERIODS OF QUALIFIED 2
CAREGIVING. 3
(a) I
NGENERAL.—Paragraphs (1) and (2) of section 4
223(f) of the Internal Revenue Code of 1986 are amended 5
to read as follows: 6
‘‘(1) E
XCLUSION OF AMOUNTS USED FOR 7
QUALIFIED MEDICAL EXPENSES OR DISTRIBUTED 8
DURING PERIODS OF QUALIFIED CAREGIVING .—Any 9
amount paid or distributed out of a health savings 10
account shall not be includible in gross income if it 11
is— 12
‘‘(A) used exclusively to pay qualified med-13
ical expenses of any account beneficiary, or 14
‘‘(B) paid or distributed during a period of 15
qualified caregiving. 16
‘‘(2) I
NCLUSION OF AMOUNTS NEITHER USED 17
FOR QUALIFIED MEDICAL EXPENSES NOR DISTRIB -18
UTED DURING PERIODS OF QUALIFIED 19
CAREGIVING.—Any amount paid or distributed out 20
of a health savings account shall be included in the 21
gross income of the account beneficiary if it is not 22
described in paragraph (1).’’. 23
(b) D
EFINITION OF PERIOD OF QUALIFIED 24
C
AREGIVING.—Section 223(f) of the Internal Revenue 25
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Code of 1986 is amended by adding at the end the fol-1
lowing new paragraph: 2
‘‘(9) P
ERIOD OFQUALIFIEDCAREGIVING.—For pur-3
poses of this section, the term ‘period of qualified 4
caregiving’ means any period during which an individual 5
is on leave or not employed by reason of a situation de-6
scribed in subparagraphs (A) through (E) of section 7
102(a)(1) of the Family and Medical Leave Act of 1993.’’. 8
(c) C
ONFORMINGAMENDMENTS.— 9
(1) Section 223(d)(1) of such Code is amended 10
by inserting ‘‘or the expenses incurred during a pe-11
riod of qualified caregiving of the account bene-12
ficiary’’ after ‘‘paying the qualified medical expenses 13
of the account beneficiary’’. 14
(2) Section 223(f)(4) of such Code is amended 15
in the heading by striking ‘‘
DISTRIBUTIONS NOT 16
USED FOR QUALIFIED MEDICAL EXPENSES ’’ and in-17
serting ‘‘
CERTAIN DISTRIBUTIONS’’. 18
(d) E
FFECTIVEDATE.—The amendments made by 19
this section shall apply with respect to taxable years begin-20
ning after the date of the enactment of this Act. 21
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SEC. 3. NO HIGH DEDUCTIBLE HEALTH PLAN REQUIRED 1
FOR HEALTH SAVINGS ACCOUNTS. 2
(a) I
NGENERAL.—Section 223(a) of the Internal 3
Revenue Code of 1986 is amended by striking ‘‘who is an 4
eligible individual for any month during the taxable year’’. 5
(b) C
ONFORMINGAMENDMENTS.— 6
(1) Section 223(b) of such Code is amended by 7
striking paragraphs (7) and (8). 8
(2) Section 223 of such Code is amended by 9
striking subsection (c). 10
(c) I
NCREASE INCONTRIBUTIONLIMIT FORHEALTH 11
S
AVINGSACCOUNTS.— 12
(1) I
N GENERAL.—Section 223(b)(1) of the In-13
ternal Revenue Code of 1986 is amended by striking 14
‘‘the sum of the monthly’’ and all that follows 15
through ‘‘eligible individual’’ and inserting ‘‘$9,000 16
(twice such amount in the case of a joint return)’’. 17
(2) C
ONFORMING AMENDMENTS .— 18
(A) Section 223(b) of such Code is amend-19
ed by striking paragraphs (2), (3), and (5) and 20
by redesignating paragraphs (4) and (6) as 21
paragraphs (2) and (3), respectively. 22
(B) Section 223(b)(2) of such Code (as re-23
designated by subparagraph (A)) is amended by 24
striking the last sentence. 25
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(C) Section 223(d)(1)(A)(ii) is amended by 1
striking ‘‘the sum of’’ and all that follows 2
through the period at the end and inserting 3
‘‘the dollar amount in effect under subsection 4
(b)(1).’’. 5
(D) Section 223(g)(1) of such Code is 6
amended— 7
(i) by striking ‘‘Each dollar amount in 8
subsections (b)(2) and (c)(2)(A)’’ and in-9
serting ‘‘The dollar amount in subsection 10
(b)(1)’’; 11
(ii) by striking ‘‘thereof’’ and all that 12
follows through ‘‘‘calendar year 2003’.’’ 13
and inserting ‘‘‘calendar year 1997’.’’; and 14
(iii) by striking ‘‘under subsections 15
(b)(2) and (c)(2)(A)’’ and inserting ‘‘under 16
subsection (b)(1)’’. 17
(d) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply with respect to months in taxable 19
years beginning after the date of the enactment of this 20
Act. 21
Æ
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