Expanded Health Savings Accounts: More Flexibility and Covered Expenses
This act significantly changes Health Savings Account (HSA) rules, making them more accessible and broadening the range of eligible expenses. Citizens will gain greater flexibility in managing their healthcare funds, regardless of specific insurance plan requirements. These changes could impact how individuals plan for medical costs and access certain services.
Key points
HSAs are now available without the requirement of being enrolled in a specific health plan.
Contribution limits to HSAs are removed, offering more freedom in saving.
The list of qualified medical expenses is expanded to include menstrual care products, over-the-counter medicines, exercise equipment, direct primary care, and dental care items.
Medical expenses incurred before establishing an HSA can now be covered if within the same or preceding tax year.
Funds from HSAs are prohibited from being used for insurance covering abortions or for abortion procedures themselves.
Easier transfer of HSA funds to a spouse or child upon the account holder's death.
Administrative errors in contributions can be corrected without penalty if fixed before the tax return due date.
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