Freedom for Families Act

This bill would make health savings accounts (HSAs) easier to get and use. It would let you open and contribute to an HSA without needing a high‑deductible health plan and allow tax‑free HSA withdrawals while you’re on family or medical leave, such as after a birth or adoption, placement of a foster child, caring for a family member with a serious health condition, your own serious health condition, or certain military‑related emergencies involving a spouse, child, or parent on active duty. The bill keeps HSA withdrawals for medical expenses tax‑free and adds that withdrawals during these caregiving periods are also tax‑free.

It also raises how much you can put into an HSA each year to $9,000 for individuals and $18,000 for joint filers (adjusted each year), and ends the extra $1,000 “catch‑up” contribution for people age 55 and older. These changes would start for tax years that begin after the bill becomes law.

• Who is affected: People who have or want an HSA; people taking family or medical leave for the reasons listed above.
• What changes: No high‑deductible plan required to use an HSA; higher yearly HSA limits; HSA money can be taken out tax‑free during qualified caregiving leave.
• When: Applies to tax years beginning after the law is enacted.