119-hr74

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 74 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 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

 January 3, 2025

 Mr. Biggs of 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 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'' after ``paying the 
 qualified medical expenses 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.
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