I 
116TH CONGRESS 
2D SESSION 
H. R. 8032 
To amend the Internal Revenue Code of 1986 to eliminate limitations on 
contributions to health savings accounts. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 14, 2020 
Mr. BIGGS (for himself, Mr. FULCHER, Mr. PERRY, Mr. BALDERSON, Mrs. 
LESKO, Mr. GOSAR, Mr. HICE of Georgia, Mr. STEWART, Mr. HARRIS, 
Mr. YOHO, and Mr. ROY) introduced the following bill; which was re-
ferred to the Committee on Ways and Means, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to eliminate 
limitations on contributions to health savings accounts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Health Savings Ac-
counts For All Act of 2020’’. 
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SEC. 2. REPEAL OF CONTRIBUTION LIMITATIONS. 
(a) IN GENERAL.—Subsection (b) of section 223 of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(b) DENIAL OF DEDUCTION TO DEPENDENTS.—No 
deduction shall be allowed under this section to any indi-
vidual with respect to whom a deduction under section 151 
is allowable to another taxpayer for a taxable year begin-
ning in the calendar year in which such individual’s tax-
able year begins.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subparagraph (A) of section 223(d)(1) of 
the Internal Revenue Code of 1986 is amended— 
(A) by striking ‘‘subsection (f)(5)’’ and in-
serting ‘‘subsection (f)(4)’’, and 
(B) by striking ‘‘accepted—’’ and all that 
follows and inserting ‘‘accepted unless it is in 
cash.’’. 
(2) Subsection (f) of section 223 of such Code 
is amended by striking paragraph (3) and by redes-
ignating paragraphs (4) through (8) as paragraphs 
(3) through (7), respectively. 
(3) Subsection (g) of section 223 of such Code 
is amended— 
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(A) by striking ‘‘subsections (b)(2) and 
(c)(2)(A)’’ both places it appears and inserting 
‘‘subsection (c)(2)(A)’’, and 
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which such taxable year begins deter-
mined by substituting ‘calendar year 2003’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof.’’. 
(4) Section 26(b)(2) of such Code is amended— 
(A) by striking ‘‘, 223(b)(8)(B)(i)(II),’’ in 
subparagraph (S), and 
(B) by striking ‘‘223(f)(4)’’ in subpara-
graph (U) and inserting ‘‘223(f)(3)’’. 
(5) Paragraph (1) of section 106(d) of such 
Code is amended by striking ‘‘under an accident or 
health plan’’ and all that follows and inserting 
‘‘under an accident or health plan.’’. 
(6) Subparagraph (C) of section 106(e)(4) of 
such Code is amended by striking ‘‘223(f)(5)’’ and 
inserting ‘‘223(f)(4)’’. 
(7) Subparagraph (C) of section 408(d)(9) of 
such Code is amended— 
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(A) by striking ‘‘LIMITATIONS.—’’ in the 
heading and all that follows through ‘‘(ii) ONE- 
TIME TRANSFER.—’’ in clause (ii), and insert-
ing ‘‘ONE-TIME TRANSFER.—’’, 
(B) by redesignating subclauses (I) and 
(II) as clauses (i) and (ii) and moving such 
clauses 2 ems to the left, and 
(C) by striking ‘‘subclause (II)’’ in clause 
(i), as so redesignated, and inserting ‘‘clause 
(ii)’’. 
(8) Section 4973 of such Code is amended by 
striking subsection (g) and by redesignating sub-
section (h) as subsection (g). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. FREEDOM FROM MANDATE. 
(a) IN GENERAL.—Section 223 of the Internal Rev-
enue Code of 1986, as amended by section 2, is further 
amended by striking subsections (c) and (g) and by redes-
ignating subsections (d), (e), (f), and (h) as subsections 
(c), (d), (e), and (f), respectively. 
(b) CONFORMING AMENDMENTS.— 
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(1) Subsection (a) of section 223 of the Inter-
nal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction for the tax-
able year an amount equal to the aggregate amount paid 
in cash during such taxable year by or on behalf of such 
individual to a health savings account of such individual.’’. 
(2) Subsection (c)(1)(A) of section 223 of such 
Code, as amended by section 2 and redesignated by 
subsection (a), is further amended by striking ‘‘sub-
section (f)(4)’’ and inserting ‘‘subsection (e)(4)’’. 
(3) Subparagraph (U) of section 26(b)(2) of 
such Code, as amended by section 2, is further 
amended by striking ‘‘section 223(f)(3)’’ and insert-
ing ‘‘section 223(e)(3)’’. 
(4) 
Sections 
35(g)(3), 
220(f)(5)(A), 
848(e)(1)(B)(v), 4973(a)(5), and 6051(a)(12) of 
such Code are each amended by striking ‘‘section 
223(d)’’ each place it appears and inserting ‘‘section 
223(c)’’. 
(5) Section 106(d)(1) of such Code is amend-
ed— 
(A) by striking ‘‘who is an eligible indi-
vidual (as defined in section 223(c)(1))’’, and 
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(B) by striking ‘‘section 223(d)’’ and in-
serting ‘‘section 223(c)’’. 
(6) Section 106(e) of such Code is amended— 
(A) by striking paragraphs (3) and (4) and 
by redesignating paragraph (5) as paragraph 
(4), 
(B) by inserting after paragraph (2) the 
following new paragraph: 
‘‘(3) TREATMENT
AS
ROLLOVER
CONTRIBU-
TION.—A qualified HSA distribution shall be treated 
as a rollover contribution described in section 
223(e)(4).’’, and 
(C) by striking ‘‘to any eligible individual 
covered under a high deductible health plan of 
the employer’’ in paragraph (4)(B)(ii) (as so re-
designated) and inserting ‘‘to any employee 
with respect to whom a health savings account 
has been established’’. 
(7) Section 408(d)(9)(A) of such Code is 
amended by striking ‘‘who is an eligible individual 
(as defined in section 223(c)) and’’. 
(8) Section 877A(g)(6) of such Code is amend-
ed 
by 
striking 
‘‘223(f)(4)’’ 
and 
inserting 
‘‘223(e)(4)’’. 
(9) Section 4975 of such Code is amended— 
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(A) in subsection (c)(6)— 
(i) by striking ‘‘section 223(d)’’ and 
inserting ‘‘section 223(c)’’, and 
(ii) by striking ‘‘section 223(e)(2)’’ 
and inserting ‘‘section 223(d)(2)’’, and 
(B) in subsection (e)(1)(E), by striking 
‘‘section 
223(d)’’ 
and 
inserting 
‘‘section 
223(c)’’. 
(10) Subsection (b) of section 4980G of such 
Code is amended to read as follows: 
‘‘(b) RULES AND REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An employer meets the re-
quirements of this subsection for any calendar year 
if the employer makes available comparable con-
tributions to the health savings accounts of all com-
parable participating employees for each coverage 
period during such calendar year. 
‘‘(2) COMPARABLE CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘comparable contributions’ 
means contributions— 
‘‘(i) which are the same amount, or 
‘‘(ii) if the employees are covered by a 
health plan, which are the same percentage 
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of the annual deductible limit under the 
plan covering the employees. 
‘‘(B) PART-YEAR
EMPLOYEES.—In the 
case of an employee who is employed by the em-
ployer for only a portion of the calendar year, 
a contribution to the health savings account of 
such employee shall be treated as comparable if 
it is an amount which bears the same ratio to 
the comparable amount (determined without re-
gard to this subparagraph) as such portion 
bears to the entire calendar year. 
‘‘(3) COMPARABLE
PARTICIPATING
EMPLOY-
EES.—For purposes of paragraph (1), the term 
‘comparable participating employees’ means all em-
ployees who are covered (if at all) under the same 
health plan of the employer and have the same cat-
egory of coverage. For purposes of the preceding 
sentence, the categories of coverage are self-only and 
family coverage. 
‘‘(4) PART-TIME EMPLOYEES.— 
‘‘(A) IN
GENERAL.—Paragraph (3) shall 
be applied separately with respect to part-time 
employees and other employees. 
‘‘(B) PART-TIME
EMPLOYEE.—For pur-
poses of subparagraph (A), the term ‘part-time 
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employee’ means any employee who is custom-
arily employed for fewer than 30 hours per 
week.’’. 
(11) Section 4980G(d) of such Code is amended 
by striking ‘‘section 4980E’’ and inserting ‘‘this sec-
tion’’. 
(12) Section 6693(a)(2)(C) of such Code is 
amended by striking ‘‘section 223(h)’’ and inserting 
‘‘section 223(f)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. ALLOWANCE OF DISTRIBUTIONS FOR PRESCRIP-
TION AND OVER-THE-COUNTER MEDICINES 
AND DRUGS. 
(a) HSAS.—Paragraph (2)(A) of section 223(c) of 
the Internal Revenue Code of 1986, as redesignated by 
section 3, is amended by adding at the end the following: 
‘‘The term ‘qualified medical expenses’ shall include an 
amount paid for any prescription or over-the-counter med-
icine or drug.’’. 
(b) ARCHER MSAS.—Section 220(d)(2)(A) of the In-
ternal Revenue Code of 1986 is amended— 
(1) by striking ‘‘section 223(d)(2)(D)’’ and in-
serting ‘‘section 223(c)(2)(B)’’, and 
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(2) by adding at the end the following: ‘‘The 
term ‘qualified medical expenses’ shall include an 
amount paid for any prescription or over-the-counter 
medicine or drug.’’. 
(c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sub-
section (f) of section 106 of the Internal Revenue Code 
of 1986 is amended to read as follows: 
‘‘(f) REIMBURSEMENTS
FOR
PRESCRIPTION
AND 
OVER-THE-COUNTER MEDICINES AND DRUGS.—For pur-
poses of this section and section 105, reimbursement for 
expenses incurred for any prescription or over-the-counter 
medicine or drug shall be treated as a reimbursement for 
medical expenses.’’. 
(d) EFFECTIVE DATES.— 
(1) 
DISTRIBUTIONS
FROM
SAVINGS
AC-
COUNTS.—The amendments made by subsections (a) 
and (b) shall apply to amounts paid in taxable years 
beginning after the date of the enactment of this 
Act. 
(2) REIMBURSEMENTS.—The amendment made 
by subsection (c) shall apply to expenses incurred in 
plan years beginning after the date of the enactment 
of this Act. 
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SEC. 5. PURCHASE OF HEALTH INSURANCE FROM HSA. 
(a) IN GENERAL.—Paragraph (2) of section 223(c) 
of the Internal Revenue Code of 1986, as redesignated by 
section 3, is amended— 
(1) by striking subparagraphs (B) and (C), and 
(2) by redesignating subparagraph (D) as sub-
paragraph (B). 
(b) CONFORMING AMENDMENT.—Paragraph (2) of 
section 223(c) of the Internal Revenue Code of 1986, as 
amended by the preceding sections of this Act, is further 
amended by striking ‘‘and any dependent (as defined in 
section 152, determined without regard to subsections 
(b)(1), (b)(2), and (d)(1)(B) thereof) of such individual’’ 
and inserting ‘‘any dependent (as defined in section 152, 
determined without regard to subsections (b)(1), (b)(2), 
and (d)(1)(B) thereof) of such individual, and any child 
(as defined in section 152(f)(1)) of such individual who 
has not attained the age of 27 before the end of such indi-
vidual’s taxable year’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to insurance pur-
chased after the date of the enactment of this Act in tax-
able years beginning after such date. 
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SEC. 6. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES 
INCURRED BEFORE ESTABLISHMENT OF AC-
COUNT. 
(a) IN GENERAL.—Paragraph (2) of section 223(c) 
of the Internal Revenue Code of 1986, as amended and 
redesignated by the preceding sections of this Act, is fur-
ther amended by adding at the end the following new sub-
paragraph: 
‘‘(C) CERTAIN
MEDICAL
EXPENSES
IN-
CURRED BEFORE ESTABLISHMENT OF ACCOUNT 
TREATED AS QUALIFIED.—An expense shall not 
fail to be treated as a qualified medical expense 
solely because such expense was incurred before 
the establishment of the health savings account 
if such expense was incurred— 
‘‘(i) during either— 
‘‘(I) the taxable year in which the 
health savings account was estab-
lished, or 
‘‘(II) the preceding taxable year, 
in the case of a health savings ac-
count established after the taxable 
year in which such expense was in-
curred but before the time prescribed 
by law for filing the return for such 
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taxable year (not including extensions 
thereof), and 
‘‘(ii) for medical care which (but for 
the fact that it was incurred before the es-
tablishment of the account) otherwise 
meets the requirements of the preceding 
subparagraphs.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 7. ADMINISTRATIVE ERROR CORRECTION BEFORE 
DUE DATE OF RETURN. 
(a) IN GENERAL.—Paragraph (3) of section 223(e) 
of the Internal Revenue Code of 1986, as amended and 
redesignated by the preceding sections of this Act, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(D) EXCEPTION
FOR
ADMINISTRATIVE 
ERRORS CORRECTED BEFORE DUE DATE OF RE-
TURN.—Subparagraph (A) shall not apply if 
any payment or distribution is made to correct 
an administrative, clerical, or payroll contribu-
tion error and if— 
‘‘(i) such distribution is received by 
the individual on or before the last day 
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prescribed by law (including extensions of 
time) for filing such individual’s return for 
such taxable year, and 
‘‘(ii) such distribution is accompanied 
by the amount of net income attributable 
to such contribution. 
Any net income described in clause (ii) shall be 
included in the gross income of the individual 
for the taxable year in which it is received.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 8. ALLOWING HSA ROLLOVER TO CHILD OR PARENT 
OF ACCOUNT HOLDER. 
(a) IN GENERAL.—Paragraph (7)(A) of section 
223(e) of the Internal Revenue Code of 1986, as redesig-
nated by the preceding sections of this Act, is amended— 
(1) by inserting ‘‘, child, parent, or grand-
parent’’ after ‘‘surviving spouse’’, 
(2) by inserting ‘‘, child, parent, or grand-
parent, as the case may be,’’ after ‘‘the spouse’’, 
(3) by inserting ‘‘, CHILD, PARENT, OR GRAND-
PARENT’’ after ‘‘SPOUSE’’ in the heading thereof, 
and 
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(4) by adding at the end the following: ‘‘In the 
case of a child who acquires such beneficiary’s inter-
est and with respect to whom a deduction under sec-
tion 151 is allowable to another taxpayer for a tax-
able year beginning in the calendar year in which 
such individual’s taxable year begins, such health 
savings account shall be treated as a health savings 
account of such child.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 9. EQUIVALENT BANKRUPTCY PROTECTIONS FOR 
HEALTH SAVINGS ACCOUNTS AS RETIRE-
MENT FUNDS. 
(a) IN GENERAL.—Section 522 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(r) 
TREATMENT
OF
HEALTH
SAVINGS
AC-
COUNTS.—For purposes of this section, any health savings 
account (as described in section 223 of the Internal Rev-
enue Code of 1986) shall be treated in the same manner 
as an individual retirement account described in section 
408 of such Code.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to cases commencing under title 
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11, United States Code, after the date of the enactment 
of this Act. 
Æ 
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