Bill 119 hr 74, also known as the Family and Medical Leave Enhancement Act, aims to amend the Internal Revenue Code of 1986 to provide tax-advantaged distributions from health savings accounts (HSAs) during periods of family or medical leave. This bill would allow individuals to withdraw funds from their HSAs without penalty in order to cover expenses related to taking time off work for family or medical reasons.
The purpose of this legislation is to provide financial support to individuals who need to take time off work to care for a sick family member, bond with a new child, or attend to their own medical needs. By allowing tax-advantaged distributions from HSAs, this bill aims to alleviate some of the financial burden that often comes with taking unpaid leave from work.
The bill does not specify the exact amount that individuals would be allowed to withdraw from their HSAs, but it does outline the qualifying reasons for taking such distributions. These reasons include the birth or adoption of a child, caring for a spouse, child, or parent with a serious health condition, or dealing with a serious health condition of one's own.
Overall, the Family and Medical Leave Enhancement Act seeks to provide additional support to individuals facing family or medical emergencies by allowing them to access funds from their HSAs without incurring penalties. This legislation aims to make it easier for individuals to take the time off work that they need without worrying about the financial consequences.