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.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 53 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 53
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
January 4, 2021
Mr. Biggs 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 accounts during family or medical
leave, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Freedom for Families Act''.
SEC. 2. DISTRIBUTIONS FROM HEALTH SAVINGS ACCOUNTS DURING PERIODS OF
QUALIFIED CAREGIVING.
(a) In General.--Paragraphs (1) and (2) of section 223(f) of the
Internal Revenue Code of 1986 are amended to read as follows:
``(1) Exclusion of amounts used for qualified medical
expenses or distributed during periods of qualified
caregiving.--Any amount paid or distributed out of a health
savings account shall not be includible in gross income if it
is--
``(A) used exclusively to pay qualified medical
expenses of any account beneficiary, or
``(B) paid or distributed during a period of
qualified caregiving.
``(2) Inclusion of amounts neither used for qualified
medical expenses nor distributed during periods of qualified
caregiving.--Any amount paid or distributed out of a health
savings account shall be included in the gross income of the
account beneficiary if it is not described in paragraph (1).''.
(b) Definition of Period of Qualified Caregiving.--Section 223(f)
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(9) Period of Qualified Caregiving.--For purposes of this
section, the term `period of qualified caregiving' means any period
during which an individual is on leave or not employed by reason of a
situation described in subparagraphs (A) through (E) of section
102(a)(1) of the Family and Medical Leave Act of 1993.''.
(c) Conforming Amendments.--
(1) Section 223(d)(1) of such Code is amended by inserting
``or the expenses incurred during a period of qualified
caregiving of the account beneficiary''.
(2) Section 223(f)(4) of such Code is amended in the
heading by striking ``distributions not used for qualified
medical expenses'' and inserting ``certain distributions''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after the date of the
enactment of this Act.
SEC. 3. NO HIGH DEDUCTIBLE HEALTH PLAN REQUIRED FOR HEALTH SAVINGS
ACCOUNTS.
(a) In General.--Section 223(a) of the Internal Revenue Code of
1986 is amended by striking ``who is an eligible individual for any
month during the taxable year''.
(b) Conforming Amendments.--
(1) Section 223(b) of such Code is amended by striking
paragraphs (7) and (8).
(2) Section 223 of such Code is amended by striking
subsection (c).
(c) Increase in Contribution Limit for Health Savings Accounts.--
(1) In general.--Section 223(b)(1) of the Internal Revenue
Code of 1986 is amended by striking ``the sum of the monthly''
and all that follows through ``eligible individual'' and
inserting ``$9,000 (twice such amount in the case of a joint
return)''.
(2) Conforming amendments.--
(A) Section 223(b) of such Code is amended by
striking paragraphs (2), (3), and (5) and by
redesignating paragraphs (4) and (6) as paragraphs (2)
and (3), respectively.
(B) Section 223(b)(2) of such Code (as redesignated
by subparagraph (A)) is amended by striking the last
sentence.
(C) Section 223(d)(1)(A)(ii) is amended by striking
``the sum of'' and all that follows through the period
at the end and inserting ``the dollar amount in effect
under subsection (b)(1).''.
(D) Section 223(g)(1) of such Code is amended--
(i) by striking ``Each dollar amount in
subsections (b)(2) and (c)(2)(A)'' and
inserting ``The dollar amount in subsection
(b)(1)'';
(ii) by striking ``thereof'' and all that
follows through ```calendar year 2003'.'' and
inserting ```calendar year 1997'.''; and
(iii) by striking ``under subsections
(b)(2) and (c)(2)(A)'' and inserting ``under
subsection (b)(1)''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to months in taxable years beginning after the date
of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Referred to the Subcommittee on Health.
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