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New HOPE Accounts for Tax-Free Health Savings and Medical Expenses

This act establishes a new tax-advantaged savings vehicle called the HOPE Account, designed exclusively for covering qualified medical expenses. Funds grow tax-free, and withdrawals used for healthcare are also tax-free. While individual contributions are not deductible, employer contributions can be excluded from income for low and middle-income earners, providing a new tool for citizens to manage rising healthcare costs.
Key points
Creates the tax-exempt HOPE Account for medical savings, with annual contribution limits up to $4,000 (self-only) or $8,000 (family coverage).
Distributions for qualified medical expenses are tax-free; using funds for non-medical purposes incurs a 30% penalty tax.
Employer contributions to HOPE Accounts are excluded from an employee's gross income, but this benefit is limited to taxpayers earning below $100,000 ($200,000 for joint filers).
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Additional Information
Print number: 118_HR_9394
Sponsor: Rep. Moore, Blake D. [R-UT-1]
Process start date: 2024-08-23
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

HOPE Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9394.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-08-23.

What are the main provisions?

Key points include:

  • Creates the tax-exempt HOPE Account for medical savings, with annual contribution limits up to $4,000 (self-only) or $8,000 (family coverage).
  • Distributions for qualified medical expenses are tax-free; using funds for non-medical purposes incurs a 30% penalty tax.
  • Employer contributions to HOPE Accounts are excluded from an employee's gross income, but this benefit is limited to taxpayers earning below $100,000 ($200,000 for joint filers).
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Moore, Blake D. [R-UT-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Health Taxes