Freedom for Families Act

Overview: The bill allows tax-free distributions from health savings accounts (HSA) during a period of qualified caregiving. It allows caregivers to establish an HSA without enrolling in a high-deductible health plan (HDHP). It increases HSA contribution limits.

HSA Distributions During Periods of Qualified Caregiving: An Caregivers can withdraw funds tax-free from an HSA if they are used for qualified medical expenses of an account beneficiary or withdrawn during a period of qualified caregiving. A period of qualified caregiving is when an individual is unemployed or on leave for reasons consistent with the Family and Medical Leave Act of 1993. This includes caring for a spouse, child, or parent with a serious health condition.

HSA Contribution Restrictions: The bill removes the requirement to be enrolled in a HDHP enrollment to access an HSA. It increases the HSA contribution limit to $9,000 for individuals and $18,000 for joint returns.