The House Ways and Means Committee approved two bills that would enhance Health Savings Accounts, but their cost and the lack of Democratic support will make enactment difficult.
The Bipartisan HSA Improvement Act of 2023 (H.R. 5688) advanced on a 28-14 vote with four Democrats supporting it. The HSA Modernization Act of 2023 (H.R. 5687) passed 24-18 without any Democratic votes. The bills would expand the ability of taxpayers to contribute to HSAs and expand the services that HSAs can be used to pay for. There are no current plans for a vote on the House floor.
H.R. 5688 is less costly and has some bipartisan support, but is not likely a high enough priority in either party for it to gain traction when there are so few opportunities for tax legislation. H.R. 5687 would cost $58 billion, with $44 billion coming from a provision that would nearly double the contribution limit to cover the combined total of the maximum deductible and out-of-pocket costs for the associated health plans.
The Ways and Means Committee also released legislation that would expand the definition of a qualified disaster for claiming disaster-related casualty losses and exclude certain wildfire relief payments from income. The Ways and Means scheduled but then cancelled a markup of the bill last week.
Contact:
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.