119-hr2436

[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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