Sponsors (16)
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Adds to subsection (b) a sentence stating that a health flexible spending arrangement or health reimbursement arrangement shall not fail to meet the requirements of subsection (b) or section 106, and no amount shall be included in gross income solely because amounts under the arrangement may be used for medical care for a parent of the taxpayer or of the spouse of the taxpayer.
Amends a subparagraph (identified in the section as Subparagraph (A)) of 26 U.S.C. 220 by inserting additional text after a specified location (text of the insertion not provided in this section).
Amends 26 U.S.C. 223(d)(2) by inserting new text after subparagraph (A).
Makes targeted tax-code changes to allow tax-preferred health accounts to cover care for parents and in‑laws. It clarifies that amounts paid from health FSAs and HRAs for a taxpayer’s parent or a spouse’s parent will not become taxable solely for that reason, and it amends rules for health savings accounts (HSAs) and Archer MSAs to change related definitions or eligibility (text of some insertions not provided). All changes apply to amounts paid after December 31, 2024.
Referred to the House Committee on Ways and Means.
Introduced January 3, 2025 by Vernon G. Buchanan · Last progress January 3, 2025
