H.R. 7681: HSA’s For All Act

This bill, titled "HSA’s For All Act," proposes changes to the eligibility criteria for Health Savings Accounts (HSAs) as outlined in the Internal Revenue Code of 1986. Here’s a summary of its main provisions:

Expansion of HSA Eligibility

The bill aims to broaden the definition of an "eligible individual" for HSAs. Under the proposed changes:

• An individual will qualify as eligible if they are covered by a "covered health plan" on the first day of the month.

Definition of Covered Health Plans

The term "covered health plan" will include:

• Any qualified health plan offered through an Exchange, as defined under the Affordable Care Act (ACA).
• Any group health plan as defined in the Public Health Service Act.

Conforming Amendments

The bill includes several amendments throughout the Internal Revenue Code to replace references to "high deductible health plan" with "covered health plan." This change would allow more individuals to qualify for HSAs irrespective of the type of health plan they have, as long as it meets the new covered health plan criteria.

Effective Date

The changes proposed in this bill would take effect for taxable years beginning after December 31, 2026.

Intent of the Bill

Overall, the intent of the HSA’s For All Act is to make HSAs more accessible to a larger number of individuals by expanding the types of health plans that qualify for HSA contributions. By doing so, the bill aims to encourage more people to utilize HSAs as a means of saving for medical expenses.

Relevant Companies

None found