1. Short title This Act may be cited as the Simplify and Expand Health Savings Accounts Act . 2. Modernization of health savings accounts (a) In general Section 223 of the Internal Revenue Code of 1986 is amended to read as follows: 223. Health savings accounts (a) Deduction allowed In the case of an individual who is an eligible individual for any month during the taxable year, there shall be allowed as a deduction for the taxable year an amount equal to the aggregate amount paid in cash during such taxable year by or on behalf of such individual to a health savings account of such individual. (b) Limitations (1) In general The amount allowable as a deduction under subsection (a) to an individual for the taxable year shall not exceed the sum of the monthly limitations for months during such taxable year that the individual is an eligible individual. (2) Monthly limitation The monthly limitation for any month is 1/12 of— (A) in the case of an eligible individual who has self-only coverage under a qualified plan as of the first day of such month, the annual limitation determined under the following table: In the case of a plan with an actuarial value of: The annual limitation is: Less than 55 percent $10,000 At least 55 percent and less than 65 percent $8,600 At least 65 percent $7,200 (B) in the case of an eligible individual who has family coverage under a qualified plan as of the first day of such month, the annual limitation determined under the following table: In the case of a plan with an actuarial value of: The annual limitation is: Less than 55 percent $20,000 At least 55 percent and less than 65 percent $17,200 At least 65 percent $14,400. (3) Additional contributions for individuals 55 or older In the case of an individual who has attained age 55 before the close of the taxable year, the applicable limitation under subparagraphs (A) and (B) of paragraph (2) shall be increased by $1,000. (4) Coordination with other contributions The limitation which would (but for this paragraph) apply under this