11.3: Health Savings Accounts
Replace health savings accounts with a new Roth IRA savings system. Other Information:
Health Savings Accounts. Health savings accounts are replaced by the new Roth IRA savings system under the tax reform features
of the Heritage plan. Existing HSAs are grandfathered, meaning that current HSA balances are not taxed when withdrawn, but
account owners may make no further deposits in the accounts. However, under the Heritage tax reform, money saved for future
health care needs or for any other purpose is no longer double-taxed. In addition, any health credit or health assistance
amount not used for premiums and any unused supplemental subsidies can be deposited into a Roth IRA-style savings account
and can be used for out-of-pocket health care expenses, including deductibles, co-pays, and other medical expenses. Under
the plan, withdrawals from these accounts are not taxed. (See the tax reform proposal.)
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