H.R. 2436

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2436 Introduced in House (IH)]

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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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