Last week, H.R. 975 the “Health Freedom for Seniors Act” was introduced in the U.S. House of Representatives. This legislation will reform health savings accounts (HSA) to empower seniors to save money for their own health care. ATR endorses this legislation and urges members of Congress to support this bill.
H.R. 975, introduced by Representative Bill Huizenga (R- Mich.) will help ensure seniors are able to use their hard earned savings for retirement. Under current law, Americans who reach age 70 and one-half are required to begin making “required minimum distributions” (RMDs) from IRAs and 401(k) plans. The accounts must be drawn down, regardless of whether the taxpayer has other funds with which to support themselves.
H.R. 975 would put a stop to this absurd law by permitting seniors a tax-free rollover of their RMD into a HSA. Because HSA dollars have no required distributions, this allows savings to be preserved for things like long-term care insurance, Medicare premiums, and other health needs as one gets further into retirement.
With healthcare costs spiraling out of control, seniors need this common sense reform now more than ever to help pay for their healthcare expenses. ATR supports this legislation and urges Congress to bring this legislation forward for a vote.