An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Health Savings Account (HSA)

A tax-advantaged savings account that can be used for qualified medical expenses. Funds contributed are tax-deductible, grow tax-free, and withdrawals for medical expenses are tax-free.

High-Deductible Health Plan (HDHP)

A health insurance plan with a higher annual deductible than traditional plans. Historically, enrollment in an HDHP was a requirement to be eligible for an HSA.

Internal Revenue Code (IRC)

The official body of tax laws in the United States, administered by the Internal Revenue Service (IRS).

Taxable Year

The annual accounting period for keeping records and reporting income and expenses. For most individual taxpayers, the taxable year is the calendar year (January 1 to December 31).

Catch-up Contribution

An additional amount that individuals aged 50 or older are allowed to contribute to certain retirement or savings accounts, like 401(k)s or HSAs, beyond the standard annual limit.

Elective Deferral Limit

The maximum amount of an employee's salary that can be withheld and contributed to certain retirement plans, such as a 401(k), in a given year.