arrow_back Back to App

New Tax-Exempt Health Savings Accounts: HOPE Accounts

This act introduces a new type of savings account, called HOPE Accounts, designed to cover qualified medical expenses. Contributions to these accounts are tax-exempt, and withdrawals for medical purposes are also tax-free. This aims to help citizens manage their healthcare costs more effectively.
Key points
Establishes new tax-exempt savings accounts (HOPE Accounts) for medical expenses.
Contributions to HOPE Accounts can come from individuals, employers, and certain Medicaid programs.
Annual contribution limits are $4,000 for individuals with self-only coverage or married filing separately/jointly with family coverage, and $8,000 for individuals with family coverage and head of household status.
Withdrawals from the account for qualified medical expenses are tax-free.
Withdrawals for non-medical purposes are taxable and subject to an additional 30% penalty, unless made after the account holder's death or due to disability.
Employers can contribute to employees' HOPE Accounts, and these contributions are excluded from the employee's gross income if their adjusted gross income does not exceed $100,000 ($200,000 for joint filers).
The act applies to tax years beginning after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_955
Sponsor: Rep. Moore, Blake D. [R-UT-1]
Process start date: 2025-02-04
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

HOPE Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_955.

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 2025-02-04.

What are the main provisions?

Key points include:

  • Establishes new tax-exempt savings accounts (HOPE Accounts) for medical expenses.
  • Contributions to HOPE Accounts can come from individuals, employers, and certain Medicaid programs.
  • Annual contribution limits are $4,000 for individuals with self-only coverage or married filing separately/jointly with family coverage, and $8,000 for individuals with family coverage and head of household status.
  • Withdrawals from the account for qualified medical expenses are tax-free.
  • Withdrawals for non-medical purposes are taxable and subject to an additional 30% penalty, unless made after the account holder's death or due to disability.
  • Employers can contribute to employees' HOPE Accounts, and these contributions are excluded from the employee's gross income if their adjusted gross income does not exceed $100,000 ($200,000 for joint filers).
  • The act applies to tax years beginning after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

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 2025-12-23.

CATEGORIES

Health Taxes