To amend the Internal Revenue Code of 1986 to reform certain rules related to health savings accounts.

This bill would change federal tax rules for health savings accounts (HSAs), starting after December 31, 2025. It would reduce the HSA tax deduction for people whose modified adjusted gross income is above set levels, such as $300,000 for joint filers and $200,000 for single filers. It would limit reimbursements to medical expenses paid within the last 2 years and require that withdrawals be documented as qualified medical expenses, with account trustees checking the documentation. Spa and beauty treatments, and exercise equipment costs above $500 a year, would not count as medical care. It would also tax account trustees that charge fees above amounts the Treasury sets as reasonable, require trustees to report their fees and account interest rates, and repeal an exception to the rule that penalty-free withdrawals be for qualified medical expenses.

Full text and official record on Congress.gov

Sponsors

• Lloyd Doggett Democrat sponsor
• 1 cosponsors