This bill would change parts of the Internal Revenue Code so that a parent of a taxpayer or a spouse can be treated like a spouse for certain tax-advantaged medical accounts. It adds parents to rules for Health Savings Accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and it lets amounts in Health Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (HRAs) be used for a parent without creating taxable income under the cited code sections. The bill amends sections 223(d)(2), 105, and 220(d)(2) of the tax code. The HSA and Archer MSA changes apply to amounts paid after December 31, 2024. The FSA and HRA change applies to expenses incurred after December 31, 2024. The bill was introduced in the House and referred to the Committee on Ways and Means.
If you pay medical costs for a parent or your spouse's parent, this bill would let you use HSAs, Archer MSAs, FSAs, or HRAs to pay those costs under the specified code provisions. The bill sets effective dates of after December 31, 2024, for the changes. Existing account rules (such as contribution limits and plan terms) still apply unless changed by other law.
No publicly available information on budgetary effects or cost estimates is included in the bill text or metadata provided.
The bill's title and text state it would allow parents' medical expenses to be treated as qualifying medical expenses for HSAs, FSAs, HRAs, and Archer MSAs. The sponsor list and title frame the change as aimed at lowering costs for caregivers by expanding who counts as eligible for these accounts.
No publicly available information on opposition, critiques, or counterarguments is included in the bill text or metadata provided.