What does Preamble of Health Savings Accounts For All Act of 2025 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose is to increase limitations on contributions to health savings accounts.

What does SHORT TITLE. of Health Savings Accounts For All Act of 2025 do?

This bill is formally titled the Health Savings Accounts For All Act of 2025.

What does INCREASE IN CONTRIBUTION LIMITATIONS. of Health Savings Accounts For All Act of 2025 do?

This section amends section 223 of the Internal Revenue Code of 1986, which relates to contributions to traditional and Roth IRAs. It modifies the calculation of IRA contribution limitations, referencing amounts under sections 402(g) and 414(v)(2). The section introduces an additional contribution allowance for individuals aged 50 or older. Several paragraphs within section 223 are struck, redesignated, or modified to align with the revised contribution limits. Conforming amendments are made to sections 223(d)(1) and 223(g)(1) of the Internal Revenue Code. Section 26(b)(2)(S) and section 408(d)(9)(C)(i)(I) of the Internal Revenue Code are also amended. The changes apply to taxable years beginning after the enactment of this Act.

What does FREEDOM FROM MANDATE. of Health Savings Accounts For All Act of 2025 do?

This section amends Section 223 of the Internal Revenue Code of 1986, impacting health savings accounts (HSAs). Subsections (c) and (g) of Section 223 are struck, and subsequent subsections are redesignated. Section 223(a) is amended to allow a deduction for cash payments made to an individual's HSA. Numerous sections of the Internal Revenue Code are amended to replace references to 'section 223(d)' with 'section 223(c)' and 'section 223(f)' with 'section 223(e)'. Section 4980G is amended to establish rules and requirements for employers making comparable contributions to health savings accounts of employees. The amendments apply to taxable years beginning after the date of enactment of this Act.

What does AMOUNTS PAID FOR HEALTH INSURANCE OR DIRECT PRIMARY CARE of Health Savings Accounts For All Act of 2025 do?

This section amends section 223(c) of the Internal Revenue Code of 1986 to include amounts paid for health insurance or direct primary care service arrangements. The amendment expands the definition of amounts eligible for exclusion from gross income to include coverage restricted to primary care services in exchange for a fixed periodic fee. Subparagraphs (B) and (C) of section 223(c)(2) are struck, and subparagraph (D) is redesignated as (B). The definition of 'dependent' is modified to include children who have not attained the age of 27 before the end of the individual's taxable year. Section 220(d)(2)(A) and subsection (f) of section 106 of the Internal Revenue Code of 1986 are amended to reflect the changes in section 223(c)(2). The amendments in subsections (a) and (b) apply to amounts paid after the date of enactment of this Act, for taxable years beginning after such date. The technical amendments in subsection (c) apply to taxable years beginning after the date of enactment of this Act.

What does SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE of Health Savings Accounts For All Act of 2025 do?

This section amends section 223(c) of the Internal Revenue Code of 1986. It adds a new subparagraph (C) to define when medical expenses incurred before a health savings account (HSA) is established are treated as qualified medical expenses. An expense is treated as qualified if incurred during the year the HSA was established or the preceding year. The expense must have been incurred for medical care that would otherwise meet the requirements of the preceding subparagraphs. The amendment applies to taxable years beginning after the date of enactment of this Act.

What does ADMINISTRATIVE ERROR CORRECTION BEFORE DUE DATE OF RETURN. of Health Savings Accounts For All Act of 2025 do?

This section amends paragraph (4) of section 223(e) of the Internal Revenue Code of 1986. It creates an exception to the application of subparagraph (A) if a payment or distribution is made to correct an administrative, clerical, or payroll contribution error. The exception applies if the distribution is received by the individual on or before the last day prescribed by law for filing their return, including extensions. The distribution must also be accompanied by the amount of net income attributable to the contribution. Net income received under this exception is included in the individual's gross income for the taxable year.

What does ALLOWING HSA ROLLOVER TO CHILD OR PARENT OF ACCOUNT HOLDER. of Health Savings Accounts For All Act of 2025 do?

This section amends section 223(e) of the Internal Revenue Code of 1986 to allow health savings accounts (HSAs) to be rolled over to a child, parent, or grandparent of the account holder. The amendment expands the definition of eligible beneficiaries for HSA rollovers to include children, parents, and grandparents. The amendments apply to taxable years beginning after the date of enactment of this Act. If a child acquires an interest in an HSA and a deduction under section 151 is allowable to another taxpayer for the child's taxable year, the HSA is treated as the child's HSA.

What does COVERAGE FOR AMOUNTS PAID FOR VITAMINS, DIETARY SUPPLEMENTS, of Health Savings Accounts For All Act of 2025 do?

This section amends section 223(c) of the Internal Revenue Code of 1986 to include 'qualified wellness expenses' as eligible for certain tax treatments. Qualified wellness expenses are defined as amounts paid for vitamins, dietary supplements, gym memberships, and wearable fitness trackers. The definition of 'dietary supplements' refers to the definition in section 201(ff) of the Federal Food, Drug, and Cosmetic Act. These amendments apply to taxable years beginning after the date of enactment of this Act.

What does EQUIVALENT BANKRUPTCY PROTECTIONS FOR HEALTH SAVINGS ACCOUNTS of Health Savings Accounts For All Act of 2025 do?

This section amends Section 522 of Title 11 of the United States Code. It adds a new subsection (r) to treat health savings accounts (HSAs) similarly to individual retirement accounts (IRAs) within the context of bankruptcy proceedings. The amendment applies to bankruptcy cases commencing after the enactment of this Act.

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Health Savings Accounts For All Act of 2025

Last updated: 11/20/2025 · Introduced: 11/20/2025

Author: Rand Paul (R-KY)

TL;DR (AI)

This bill increases contribution limits for health savings accounts (HSAs) and traditional/Roth IRAs, including an additional allowance for individuals aged 50 or older.
It allows individuals to deduct cash payments made to their HSAs and amends the Internal Revenue Code to reflect these changes in HSA regulations.
The bill expands the definition of eligible health savings account expenses to include payments for health insurance, direct primary care, vitamins, dietary supplements, gym memberships, and wearable fitness trackers.
It enables HSA rollovers to children, parents, or grandparents of the account holder, and adjusts tax treatment accordingly.
This legislation provides health savings accounts with bankruptcy protections equivalent to those afforded to individual retirement accounts.

119th Congressin committeeHR. 8324(In Committee)Official page

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Includes provisions on preamble, short title., and 8 more.

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