I 

118TH CONGRESS 

1ST SESSION H. R. 107 

To amend the Internal Revenue Code of 1986 to allow for tax-advantaged 

distributions from health savings accounts during family or medical leave, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2023 

Mr. BIGGS introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow for 

tax-advantaged distributions from health savings accounts during family or medical leave, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Freedom for Families 

5 Act’’. 


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1 SEC. 2. DISTRIBUTIONS FROM HEALTH SAVINGS ACCOUNTS 

2 DURING PERIODS OF QUALIFIED 

3 CAREGIVING. 

4 (a) IN GENERAL.—Paragraphs (1) and (2) of section 

5 223(f) of the Internal Revenue Code of 1986 are amended 

6 to read as follows: 

7 ‘‘(1) EXCLUSION OF AMOUNTS USED FOR

8 QUALIFIED MEDICAL EXPENSES OR DISTRIBUTED

9 DURING PERIODS OF QUALIFIED CAREGIVING.—Any 

10 amount paid or distributed out of a health savings 

11 account shall not be includible in gross income if it 

12 is— 

13 ‘‘(A) used exclusively to pay qualified med14 ical expenses of any account beneficiary, or 

15 ‘‘(B) paid or distributed during a period of 

16 qualified caregiving. 

17 ‘‘(2) INCLUSION OF AMOUNTS NEITHER USED

18 FOR QUALIFIED MEDICAL EXPENSES NOR DISTRIB19 UTED DURING PERIODS OF QUALIFIED

20 CAREGIVING.—Any amount paid or distributed out 

21 of a health savings account shall be included in the 

22 gross income of the account beneficiary if it is not 

23 described in paragraph (1).’’. 

24 (b) DEFINITION OF PERIOD OF QUALIFIED

25 CAREGIVING.—Section 223(f) of the Internal Revenue 


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•HR 107 IH

1 Code of 1986 is amended by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(9) PERIOD OF QUALIFIED CAREGIVING.—For pur4 poses of this section, the term ‘period of qualified 

5 caregiving’ means any period during which an individual 

6 is on leave or not employed by reason of a situation de7 scribed in subparagraphs (A) through (E) of section 

8 102(a)(1) of the Family and Medical Leave Act of 1993.’’. 

9 (c) CONFORMING AMENDMENTS.— 

10 (1) Section 223(d)(1) of such Code is amended 

11 by inserting ‘‘or the expenses incurred during a pe12 riod of qualified caregiving of the account bene13 ficiary’’ after ‘‘paying the qualified medical expenses 

14 of the account beneficiary’’. 

15 (2) Section 223(f)(4) of such Code is amended 

16 in the heading by striking ‘‘DISTRIBUTIONS NOT

17 USED FOR QUALIFIED MEDICAL EXPENSES’’ and in18 serting ‘‘CERTAIN DISTRIBUTIONS’’. 

19 (d) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply with respect to taxable years begin21 ning after the date of the enactment of this Act. 


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•HR 107 IH

1 SEC. 3. NO HIGH DEDUCTIBLE HEALTH PLAN REQUIRED 

2 FOR HEALTH SAVINGS ACCOUNTS. 

3 (a) IN GENERAL.—Section 223(a) of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘who is an 

5 eligible individual for any month during the taxable year’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Section 223(b) of such Code is amended by 

8 striking paragraphs (7) and (8). 

9 (2) Section 223 of such Code is amended by 

10 striking subsection (c). 

11 (c) INCREASE IN CONTRIBUTION LIMIT FOR HEALTH

12 SAVINGS ACCOUNTS.— 

13 (1) IN GENERAL.—Section 223(b)(1) of the In14 ternal Revenue Code of 1986 is amended by striking 

15 ‘‘the sum of the monthly’’ and all that follows 

16 through ‘‘eligible individual’’ and inserting ‘‘$9,000 

17 (twice such amount in the case of a joint return)’’. 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) Section 223(b) of such Code is amend20 ed by striking paragraphs (2), (3), and (5) and 

21 by redesignating paragraphs (4) and (6) as 

22 paragraphs (2) and (3), respectively. 

23 (B) Section 223(b)(2) of such Code (as re24 designated by subparagraph (A)) is amended by 

25 striking the last sentence. 


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•HR 107 IH

1 (C) Section 223(d)(1)(A)(ii) is amended by 

2 striking ‘‘the sum of’’ and all that follows 

3 through the period at the end and inserting 

4 ‘‘the dollar amount in effect under subsection 

5 (b)(1).’’. 

6 (D) Section 223(g)(1) of such Code is 

7 amended— 

8 (i) by striking ‘‘Each dollar amount in 

9 subsections (b)(2) and (c)(2)(A)’’ and in10 serting ‘‘The dollar amount in subsection 

11 (b)(1)’’; 

12 (ii) by striking ‘‘thereof’’ and all that 

13 follows through ‘‘ ‘calendar year 2003’.’’ 

14 and inserting ‘‘ ‘calendar year 1997’.’’; and 

15 (iii) by striking ‘‘under subsections 

16 (b)(2) and (c)(2)(A)’’ and inserting ‘‘under 

17 subsection (b)(1)’’. 

18 (d) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply with respect to months in taxable 

20 years beginning after the date of the enactment of this 

21 Act. 

Æ 


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