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Changes to Health Savings Accounts: Restrictions on Abortion Expense Coverage.

This law modifies rules for tax-advantaged health accounts (HSAs, FSAs, HRAs). Starting in 2025, most abortion expenses will no longer qualify as tax-free medical expenses. This means using funds from these accounts for non-excluded abortions could result in taxable income and potential penalties.
Key points
Expenses for most abortions are excluded from the definition of "qualified medical expenses" for HSAs, FSAs, and other health accounts.
Exceptions apply for abortions resulting from rape or incest, or those necessary to save the life of the woman.
Using these accounts for non-qualified expenses may lead to additional taxes and penalties for account holders starting in 2025.
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Additional Information
Protecting Life in Health Savings Accounts Act
Print number: HR 8049
Sponsor: Rep. Mooney, Alexander X. [R-WV-2]
Process start date: 2024-04-17