This bill makes several significant changes to Health Savings Accounts (HSAs), tax-advantaged savings accounts typically used with high-deductible health plans. The legislation increases HSA contribution limits by tying them to 401(k) contribution limits and adds catch-up contributions for people over 50, expands eligible expenses to include vitamins, dietary supplements, gym memberships, and fitness trackers, and removes the requirement that account holders be enrolled in a high-deductible health plan. The bill also allows HSA funds to cover primary care membership fees, permits rollovers to spouses, children, parents, and grandparents upon death, and provides bankruptcy protections for HSAs comparable to retirement accounts. Additionally, it creates a grace period for correcting administrative errors and allows certain medical expenses incurred before an account is opened to be reimbursed. The changes take effect for tax years beginning after the bill's enactment, with no specific federal funding mechanisms mentioned in the legislation.
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