Catch Up Act

The Catch Up Act would amend the Internal Revenue Code to let both spouses contribute catch-up amounts to the same Health Savings Account (HSA) when they are married and meet certain HDHP coverage conditions. Specifically, if both spouses are eligible and either has family coverage under a high-deductible health plan (HDHP) on the first day of a month, the rule for calculating the HSA limit would treat both spouses as contributing toward a shared limit. The limit is determined by excluding other HDHP coverage, reducing the limit by contributions to Archer MSAs (Archer Medical Savings Accounts), and then dividing the remaining amount equally between the spouses unless they choose a different division. If both spouses are age 55 or older, their additional catch-up contributions can be included in the amount to be divided; otherwise those additional amounts are not included in the division. The changes would apply to taxable years beginning after December 31, 2025. In short, the bill increases flexibility for married couples with HDHPs by allowing both spouses to contribute their catch-up amounts to the same HSA and to share the allowable catch-up limit, under a defined method for allocating the amount between them.