Exploring “The One, Big, Beautiful Bill” and its proposed changes to HSAs.

There has been no shortage of conversation about what’s in the Trump Administration’s “One, Big, Beautiful Bill”, but the headlines that caught my attention for people nearing retirement recently centered on the proposed changes to the laws regarding Health Savings Accounts (HSAs). I decided to dive deeper into Laura Saunders’ article in The Wall Street Journal “Big Tax Breaks for Health Savings Accounts Get Even Better in the GOP Bill” to help explain what these changes mean and how they differ from today’s status quo. Plus, stick around to the end to see if you have been taking advantage of your HSA based on how the laws currently regulate them. 

There’s a new proposal floating through Congress that could open the door to HSAs for 20 million more Americans. That’s huge. It’s been featured in publications like The Wall Street Journal and Yahoo Finance, and people like Roy Ramthun of HSA Consulting Services—aka “Mr. HSA”—are calling attention to the most important changes.

If this bill passes, it could:

Whether you’re retiring early, managing health costs on fixed incomes or have felt a strain on your finances due to health costs and taxes, these changes have the potential to impact your outlook with HSAs moving forward.

An HSA is the only account that can give you a triple tax break:

And here’s the kicker—unlike a Flexible Spending Account (FSA), you don’t lose unused HSA money at year’s end. It keeps growing for you, year after year. Yet, many people treat HSAs like FSAs and use up all their contributions each year. That’s the most common decision I see people making.

Instead, you might want to consider what it would look like to approach your HSA differently. Contribute the maximum to your HSA, but don’t touch it unless absolutely necessary. Pay for current healthcare costs out-of-pocket if you can, and save the HSA funds for retirement. Health costs are a big part of retirement expenses, and your HSA can be a powerful tool to cover those tax-free.

Here’s another surprise: Many people think they’re maxing out their HSA when they’re not. If you’re contributing through payroll deductions—maybe $100 per paycheck—that might only total $2,600 for the year. But for 2025, the actual limits are:

And no—you don’t have to stop at your employer’s HSA. You can contribute additional funds on your own or even open a second HSA account if your first provider won’t accept direct contributions. Many people don’t realize that.

If the bill passes, here are a few of the proposed improvements I’m most excited about:

Even if none of this legislation passes, there’s still plenty of opportunity to benefit from your HSA today:

If the bill passes as it is currently constructed at the time of this blog’s posting, the opportunities to utilize HSAs grow. But even without the changes, an HSA is still one of the most tax-efficient savings tools out there—especially for future healthcare costs in retirement.

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