H.R. 6577: Stop Penalizing Working Seniors Act

This bill, officially titled the "Stop Penalizing Working Seniors Act," aims to amend the Internal Revenue Code to allow individuals who are 65 years old or older and enrolled only in Medicare Part A to contribute to health savings accounts (HSAs).

Key Provisions

• Eligibility for Contributions: Currently, there are restrictions preventing certain seniors from making contributions to HSAs. This bill proposes that seniors who are only entitled to hospital insurance benefits under Medicare Part A should be permitted to contribute to HSAs. By making this change, the legislation seeks to provide more flexibility and financial options for working seniors with Medicare coverage.
• Effective Date: If the bill is passed, the new rules would take effect for taxable years beginning after December 31, 2024.

Impact on Health Savings Accounts

The amendment to the law would allow seniors who are currently restricted from contributing to HSAs due to their Medicare enrollment status to start saving in these accounts. HSAs are tax-advantaged savings accounts that can be used for qualified medical expenses, making them a useful financial tool for managing healthcare costs.

Overall Purpose

The overall goal of the legislation is to alleviate the financial burden on working seniors by allowing them greater access to health savings plans, thus promoting financial security and healthcare flexibility for this demographic.

Relevant Companies

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