Child Health Savings Account Act of 2022
Bill: H.R.6507 | Sponsor: Rep. Van Duyne, Beth (R-TX)
Policy area: Taxation

Summary:
Child Health Savings Account Act of 2022
This bill allows for the establishment of child health savings accounts for the benefit of the minor children of a taxpayer. These accounts provide for a tax deduction for amounts paid in cash, up to $3,000 in a taxable year, by an individual taxpayer to such accounts.
The bill sets forth rules for the taxation of distributions from such accounts for children under and over the age of 18 years and allows for exceptions to such rules in the case of the disability or death of a child.

To amend the Internal Revenue Code of 1986 to allow for the 
establishment of child health savings accounts, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Health Savings Account Act of 
2022''.

SEC. 2. HEALTH SAVINGS ACCOUNTS.

    (a) Child Health Savings Account.--Section 223 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(i) Child Health Savings Account.--
            ``(1) In general.--In addition to any deduction allowed 
        under subsection (a) for any taxable year, there shall be 
        allowed as a deduction under this section an amount equal to 
        the aggregate amount paid in cash by an individual during the 
        taxable year to a child savings account of a child of the 
        individual.
            ``(2) Limitation.--The amount taken into account under 
        paragraph (1) with respect to each child of an individual 
        during the taxable year shall not exceed an amount equal to 
        $3,000.
            ``(3) Child health savings account.--For the purposes of 
        this subsection, the term `child health savings account' means 
        a health savings account designated as a child health savings 
        account and established for the benefit of a child of an 
        individual, but only if under the written governing instrument 
        creating the trust, no contribution will be accepted to the 
        extent such contribution, when added to previous contributions 
        to the trust for the calendar year, exceeds the dollar amount 
        in effect under paragraph (2).
            ``(4) Treatment of account before age of 18.--For the 
        purposes of this section, except as otherwise provided in this 
        subsection, a child health savings account shall be treated as 
        a health savings account of the parents of the child until the 
        child attained the age of 18, after which such account shall be 
        treated as a health savings account of the child.
            ``(5) Distributions.--
                    ``(A) In general.--For the purposes of this 
                section--
                            ``(i) Before age of 18.--Any amount paid or 
                        distributed out of a child health savings 
                        account before the child with respect to whom 
                        the account was established has attained the 
                        age of 18, shall be included in the gross 
                        income of the parents of the child, and 
                        subsection (f)(A) shall apply (relating to 
                        additional tax on distributions not used for 
                        qualified medical expenses).
                            ``(ii) Age 18 and older.--Any amount paid 
                        or distributed out of such account after the 
                        child has attained the age of 18 may only be 
                        treated as used to pay qualified medical 
                        expenses to the extent such child is not 
                        covered as a dependent under insurance (other 
                        than permitted insurance) of a parent.
                    ``(B) Exceptions for disability or death of a 
                child.--If the child becomes disabled within the 
                meaning of section 72(m)(7) or dies--
                            ``(i) paragraph (1) shall not apply to any 
                        subsequent payment or distribution, and
                            ``(ii) a parent may rollover the amount in 
                        such account to an individual retirement plan 
                        of the parent, to any health savings account of 
                        the parent, or to any child health savings 
                        account of any other child of the parent.
            ``(6) Regulations.--The Secretary shall issue such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out the purposes of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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