HOPE Act of 2024

The HOPE Act of 2024 would establish HOPE Accounts, tax-advantaged savings accounts for paying qualified medical expenses. These accounts would allow individuals to save for medical costs with tax-free growth and distributions, with contribution limits of up to $4,000 per month for self-only coverage or $8,000 for family coverage. To qualify, individuals must have minimum essential health coverage and cannot have other health savings accounts like HSAs or FSAs. Contributions are generally not deductible but may be excluded from gross income for lower-income individuals, and distributions for qualified medical expenses would be tax-free. The bill also includes rules for employer contributions and coordination with existing health savings mechanisms.