Bill Details
Status
Latest action
2025-03-27 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-03-27
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (11)
- Rep. Schmidt, Derek [R-Kansas-2]
- Rep. Carey, Mike [R-Ohio-15]
- Rep. Meuser, Daniel [R-Pennsylvania-9]
- Rep. Davis, Donald G. [D-North Carolina-1]
- Rep. Steube, W. Gregory [R-Florida-17]
- Rep. Ross, Deborah K. [D-North Carolina-2]
- Rep. Fitzgerald, Scott [R-Wisconsin-5]
- Rep. Tiffany, Thomas P. [R-Wisconsin-7]
- Rep. Van Orden, Derrick [R-Wisconsin-3]
- Rep. Hamadeh, Abraham J. [R-Arizona-8]
- Rep. Yakym, Rudy [R-Indiana-2]
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would let people use money from a health savings account, or HSA, to pay for a beneficiary’s funeral costs without facing the usual tax penalty, as long as the amount qualifies under the new rules. It also sets a limit on how much can be used this way and says the rule would apply only to funeral expenses paid after the bill becomes law.
- Up to $5,000 from an HSA could be treated as a qualified, tax-free withdrawal for funeral expenses of the account beneficiary.
- The bill defines funeral expenses broadly. These can include burial or cremation, embalming, preparing the remains, a casket or urn, a hearse, funeral director services, a funeral venue fee, transporting the remains, grave digging, a grave liner, and a grave plot.
- It also says funeral costs paid during the 90 days after the beneficiary’s death would be treated as if they were incurred right before death.
- The change would apply to money paid after the bill is enacted, for tax years ending after that date.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2436 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2436
To amend the Internal Revenue Code of 1986 to treat distributions from
health savings accounts for funeral expenses of the account beneficiary
as qualified distributions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Mr. Hern of Oklahoma introduced the following bill; which was referred
to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to treat distributions from
health savings accounts for funeral expenses of the account beneficiary
as qualified distributions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. DISTRIBUTIONS FROM HEALTH SAVINGS ACCOUNTS FOR FUNERAL
EXPENSES OF THE ACCOUNT BENEFICIARY TREATED AS QUALIFIED
DISTRIBUTIONS.
(a) In General.--Section 223(d)(2)(A) of the Internal Revenue Code
of 1986 is amended by striking ``menstrual care products'' and
inserting ``menstrual care products, or funeral expenses of the account
beneficiary,''.
(b) Funeral Expenses.--Section 223(d)(2) of such Code is amended by
adding at the end the following new subparagraph:
``(E) Funeral expenses.--
``(i) In general.--For purposes of this
paragraph, the term `funeral expenses' means
the amounts paid incident to the care and
disposition of the remains of an account
beneficiary following the death of such
beneficiary, including the amounts paid for
burial, cremation, embalming, interment, or
inurnment of the remains, preparation of the
remains for such burial, cremation, embalming,
interment, or inurnment, furnishing of clothing
for the remains, furnishing of a casket or urn,
a hearse service, a funeral director's
services, a funeral venue fee, transportation
of the remains to the place designated for the
disposition of the remains, grave digging,
furnishing of a grave liner, and furnishing of
a grave plot.
``(ii) Limitation.--The aggregate amount
treated as funeral expenses under this section
with respect to any account beneficiary shall
not exceed $5,000.''.
(c) Coordination With Rules for Treatment of Account Incident to
Death of Beneficiary.--Section 223(f)(8)(B)(ii) of such Code is amended
by adding at the end the following new subclause:
``(III) Period for treatment of
funeral expenses as incurred before
death.--For the 90-day period beginning
on the date of the death of an account
beneficiary, the funeral expenses (as
that term is defined in subsection
(d)(2)(E)) of such beneficiary shall be
treated as if incurred immediately
before the death of such
beneficiary.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid after the date of the enactment of this Act, in
taxable years ending after such date.
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