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Tax-free HSA withdrawals for senior home care expenses.

New rules allow tax-free withdrawals from Health Savings Accounts (HSAs) to cover specific home care expenses for seniors. This includes assistance with daily activities like eating or bathing, provided by licensed caregivers. The aim is to make it easier for families to finance in-home support for elderly relatives.
Key points
HSA funds can now be used for qualified senior home care services without tax.
Services must be provided by state-licensed providers and include at least three of seven specified daily living activities (e.g., eating, bathing).
Funds cannot be used for services provided by close relatives.
A public awareness campaign will inform citizens about these new eligible expenses.
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Additional Information
Print number: 117_HR_2898
Sponsor: Rep. Porter, Katie [D-CA-45]
Process start date: 2021-04-28