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119-hr-74119th CongressWALLET

Freedom for Families Act

Sponsored By: Representative Biggs, Andy [R-AZ-5]

Introduced

Summary

Expands tax-free HSA use during family or medical leave. The bill would let people tap Health Savings Account money for medical costs while on a defined period of "qualified caregiving" and treat those expenses like other qualified medical expenses.

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  • Families and caregivers: Expenses paid from an HSA during a period of qualified caregiving tied to the Family and Medical Leave Act would count as qualified medical expenses and be excluded from taxable income.
  • HSA savers and workers: The bill would remove the requirement that HSA holders have a high-deductible health plan and drop the monthly eligibility test. It would also raise the annual individual contribution limit to $9,000 and to $18,000 for married couples filing jointly.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Higher HSA limits and eligibility

If enacted, the bill would remove the rule that you must have a high-deductible health plan every month to contribute to an HSA. It would set annual contribution limits at $9,000 for single filers and $18,000 for joint filers. The bill would also change how future HSA limits are indexed and update related statute references. These changes would apply to months in taxable years beginning after enactment.

Tax-free HSA withdrawals during caregiving

If enacted, amounts you withdraw from an HSA while on FMLA-type caregiving leave would not count as taxable income. The bill would also treat expenses you incur during that caregiving period as qualified medical expenses for HSA use. Withdrawals not used for medical expenses and not taken during a caregiving period would still be taxable. These changes would apply to taxable years beginning after enactment.

Sponsors & CoSponsors

Sponsor

Biggs, Andy [R-AZ-5]

AZ • R

Cosponsors

  • Rep. Burlison, Eric [R-MO-7]

    MO • R

    Sponsored 1/3/2025

Roll Call Votes

No roll call votes available for this bill.

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