117 HR 6507 IH: Child Health Savings Account Act of 2022 U.S. House of Representatives 2022-01-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I117th CONGRESS2d SessionH. R. 6507IN THE HOUSE OF REPRESENTATIVESJanuary 25, 2022Ms. Van Duyne introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to allow for the establishment of child health savings accounts, and for other purposes.

1.

Short title

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

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.