H.R. 74

119 HR 74 IH: Freedom for Families Act
 U.S. House of Representatives
 2025-01-03
 text/xml
 EN
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 I  119th CONGRESS  1st Session  H. R. 74  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.
1.
Short title
This Act may be cited as the   Freedom for Families Act  .
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.
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.