WSJ Your Money Briefing The New GOP Bill Could Make HSAs Even More Accessible
12 snips
Jun 5, 2025 Health savings accounts (HSAs) could become more accessible for millions under a new Republican bill. The proposed changes may allow couples to contribute more and enable tax-free withdrawals for fitness expenses. Comparisons are made between HSAs and Flexible Savings Accounts (FSAs), highlighting their benefits and tax advantages. The discussion also dives into new eligibility rules for young adults and spousal contributions. Stay informed about these exciting developments in healthcare finance!
AI Snips
Chapters
Transcript
Episode notes
HSAs: Tax-Advantaged Health Savings
- HSAs are tax-advantaged accounts paired with high deductible health plans requiring high out-of-pocket payments.
- Funds contributed can be saved, grown, and withdrawn tax-free for qualified medical expenses years later.
Fitness Expenses Eligible for HSA
- The proposed bill would allow tax-free withdrawals from HSAs for fitness expenses up to $500 for individuals and $1,000 for families annually.
- This is a first and includes things like gym memberships and yoga classes without needing medical prescriptions.
HSAs Compatible With Medicare Part A
- The bill would allow people age 65+ on Medicare Part A to still have a high deductible health plan with an HSA.
- This change removes a current barrier for seniors who want to keep HSAs alongside Medicare.