Retirement Health Savings Act of 2015

Summary: Retirement Health Savings Act of 2015 This bill amends the Internal Revenue Code to exclude from gross income, for income tax purposes, distributions from certain tax-exempt retirement plans to a heath savings account in which an individual who is covered by a high deductible health care plan is participating (qualified HSA funding distribution). The bill also exempts such&nbsp;distributions from the 10% penalty for&nbsp;premature retirement plan distributions. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Retirement Health Savings Act of 
2015''.

SECTION 2. ROLLOVERS FROM RETIREMENT PLANS TO HEALTH SAVINGS ACCOUNTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139E the following new section:

``SEC. 139F. HSA FUNDING DISTRIBUTIONS.

    ``(a) In General.--In the case of an eligible individual, gross 
income does not include a qualified HSA funding distribution.
    ``(b) Qualified HSA Funding Distribution.--For purposes of this 
section, the term `qualified HSA funding distribution' means any 
distribution from an eligible retirement plan of an eligible individual 
to the extent that such distribution is contributed to a health savings 
account of such individual (or of the surviving spouse, a dependent of 
the surviving spouse, or alternate payee (as defined in section 
414(p)(8)) of such individual) not later than the 60th day after the 
day on which such individual (or such surviving spouse, dependent, or 
alternate payee) receives such distribution or in a direct trustee-to-
trustee transfer.
    ``(c) Distribution Treated as Rollover to HSA.--For purposes of 
sections 223 and 4973(g), a qualified HSA funding distribution shall be 
treated as a rollover contribution described in section 223(f)(5).
    ``(d) Definitions.--For purposes of this section--
            ``(1) Eligible retirement plan.--The term `eligible 
        retirement plan' has the meaning given such term by section 
        402(c)(8)(B), except that such term shall also include an 
        eligible deferred compensation plan maintained by an eligible 
        employer described in section 457(e)(1)(B).
            ``(2) Eligible individual.--The term `eligible individual' 
        has the meaning given such term by section 223(c)(1).''.
    (b) 10-Percent Penalty on Early Distributions Not To Apply.--
Section 72(t)(2)(A) of such Code is amended by striking ``or'' at the 
end of clause (vii), by striking the period at the end of clause (viii) 
and inserting ``, or'', and by inserting after clause (viii) the 
following new clause:
                            ``(ix) a qualified HSA funding distribution 
                        (as defined by section 139F(b)).''.
    (c) Repeal of One-Time Qualified HSA Funding Distributions From 
IRAs.--Section 408(d) of such Code is amended by striking paragraph 
(9).
    (d) Conforming Amendments.--
            (1) Section 26(b)(2)(S) of such Code is amended by striking 
        ``, 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II)'' and 
        inserting ``and 223(b)(8)(B)(i)(II)''.
            (2) Section 223(b)(4) of such Code is amended by striking 
        subparagraph (C), by striking ``, and'' at the end of 
        subparagraph (B) and inserting a period, and by inserting ``, 
        and'' at the end of subparagraph (A).
            (3) Section 401(k)(2)(B)(i) of such Code is amended by 
        striking ``or'' at the end of subclause (IV), by striking 
        ``and'' at the end of subclause (V) and inserting ``or'', and 
        by inserting after subclause (V) the following new subclause:
                                    ``(VI) the funding of a health 
                                savings account under section 139F, 
                                and''.
            (4) Section 402(c)(4) of such Code is amended by striking 
        ``and'' at the end of subparagraph (B), by striking the period 
        at the end of subparagraph (C) and inserting ``, and'', and by 
        inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) any qualified HSA funding distribution (as 
                defined by section 139F(b)).''.
            (5) Section 403(a) of such Code is amended by adding at the 
        end the following new paragraph:
            ``(6) Special rule for qualified hsa funding 
        distribution.--To the extent provided in section 139F, 
        paragraph (1) shall not apply to the amount distributed under 
        the contract which is otherwise includible in gross income 
        under this subsection.''.
            (6) Section 403(b) of such Code is amended by adding at the 
        end the following new paragraph:
            ``(15) Special rule for qualified hsa funding 
        distribution.--To the extent provided in section 139F, 
        paragraph (1) shall not apply to the amount distributed under 
        the contract which is otherwise includible in gross income 
        under this subsection.''.
            (7) Section 457(a) of such Code is amended by adding at the 
        end the following new paragraph:
            ``(4) Special rule for qualified hsa funding 
        distribution.--To the extent provided in section 139F, 
        paragraph (1) shall not apply to amounts otherwise includible 
        in gross income under this subsection.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to distributions in taxable years beginning after the date of the 
enactment of this Act.