Trump’s 2025 Tax Plan Aims to Supercharge Health Savings Accounts
Health Savings Accounts (HSAs), long favored by savers seeking a triple tax advantage on medical expenses, could soon get a major facelift under former President Donald Trump’s 2025 tax proposal, recently passed by the House.
Dubbed the “One Big Beautiful Bill,” the sweeping legislation includes significant changes aimed at expanding access to and increasing the utility of HSAs for millions of Americans.
Doubling Contribution Limits
One of the most consequential shifts is the proposal to double the annual contribution limits. Under the plan, individuals could contribute up to $8,600 annually, while families may be allowed up to $17,100. This marks a dramatic increase from current limits of $4,150 and $8,300, respectively (as of 2025).
The increases may begin to phase out for higher-income households—those earning more than $75,000 for individuals and $150,000 for married couples.
Expanded Eligibility
Another notable reform may allow working seniors on Medicare Part A to contribute to HSAs, a reversal of a long-standing rule that effectively excluded retirees from this popular savings vehicle. Additionally, married couples may be allowed to make catch-up contributions to the same account, rather than splitting them into separate ones—a move aimed at simplifying HSA planning.
More Ways to Spend, More Ways to Save
The proposed legislation may also expand the types of expenses HSAs can cover. Gym memberships, fitness programs, and other wellness-related services may become eligible for tax-free reimbursement, in a bid to encourage preventive care and healthier lifestyles.
Another important tweak: individuals may be permitted to use HSA funds for medical expenses incurred up to 60 days before officially opening the account, provided they were already covered by a high-deductible health plan. That flexibility could benefit those who experience sudden medical costs early in the plan year.
Finally, the bill may ease rules around account transfers, allowing more Americans to roll over funds from Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) into HSAs, consolidating health funds in a single, tax-advantaged account.
What’s Next?
While the bill passed the House largely along party lines, its fate in the Democrat-controlled Senate remains uncertain. Negotiations are expected to continue into the summer, and revisions are likely.
For now, our position is to stay informed but not make any immediate changes. If passed in its current form, the bill’s HSA provisions may take effect in 2026.
Source: https://www.congress.gov/bill/119th-congress/house-bill/1/text
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