I 

112TH CONGRESS 

2D SESSION H. R. 3819 

To amend the Internal Revenue Code of 1986 to allow the transfer of 

required minimum distributions from a retirement plan to a health savings account. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2012 

Mr. HUIZENGA of Michigan 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 allow the 

transfer of required minimum distributions from a retirement plan to a health savings account. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Health Freedom for 

5 Seniors Act’’. 

6 SEC. 2. TRANSFER OF REQUIRED MINIMUM DISTRIBUTION 

7 FROM RETIREMENT PLAN TO HEALTH SAV8 INGS ACCOUNT. 

9 (a) TRANSFER FROM RETIREMENT PLAN.— 


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1 (1) INDIVIDUAL RETIREMENT ACCOUNTS.—Sec2 tion 408(d) of such Code is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(10) REQUIRED MINIMUM DISTRIBUTION

5 TRANSFERRED TO HEALTH SAVINGS ACCOUNT.— 

6 ‘‘(A) IN GENERAL.—In the case of an individual who has attained the age of 701 7 ⁄2 and 

8 who elects the application of this paragraph for 

9 a taxable year, gross income of the individual 

10 for the taxable year does not include a qualified 

11 HSA transfer to the extent such transfer is oth12 erwise includible in gross income. 

13 ‘‘(B) QUALIFIED HSA TRANSFER.—For 

14 purposes of this paragraph, the term ‘qualified 

15 HSA transfer’ means any distribution from an 

16 individual retirement plan— 

17 ‘‘(i) to a health savings account of the 

18 individual in a direct trustee-to-trustee 

19 transfer, 

20 ‘‘(ii) to the extent such distribution 

21 does not exceed the required minimum dis22 tribution determined under section 

23 401(a)(9) for the distribution calendar 

24 year ending during the taxable year. 


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1 ‘‘(C) APPLICATION OF SECTION 72.—Not2 withstanding section 72, in determining the ex3 tent to which an amount is treated as a dis4 tribution for purposes of paragraph (1), the en5 tire amount of the distribution shall be treated 

6 as includible in gross income without regard to 

7 paragraph (1) to the extent that such amount 

8 does not exceed the aggregate amount which 

9 would have been so includible if all amounts in 

10 all individual retirement plans of the individual 

11 were distributed during such taxable year and 

12 all such plans were treated as 1 contract for 

13 purposes of determining under section 72 the 

14 aggregate amount which would have been so in15 cludible. Proper adjustments shall be made in 

16 applying section 72 to other distributions in 

17 such taxable year and subsequent taxable 

18 years.’’. 

19 (2) OTHER RETIREMENT PLANS.—Section 402 

20 of the Internal Revenue Code of 1986 is amended by 

21 adding at the end the following new subsection: 

22 ‘‘(m) REQUIRED MINIMUM DISTRIBUTION TRANS23 FERRED TO HEALTH SAVINGS ACCOUNT.— 

24 ‘‘(1) IN GENERAL.—In the case of an individual 

who has attained the age of 701 25 ⁄2 and who elects the 


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1 application of this subsection for a taxable year, 

2 gross income of the individual for the taxable year 

3 does not include a qualified HSA transfer to the ex4 tent such transfer is otherwise includible in gross in5 come. 

6 ‘‘(2) QUALIFIED HSA TRANSFER.—For pur7 poses of this subsection, the term ‘qualified HSA 

8 transfer’ means any distribution from an retirement 

9 plan— 

10 ‘‘(A) to a health savings account of the in11 dividual in a direct trustee-to-trustee transfer, 

12 ‘‘(B) to the extent such distribution does 

13 not exceed the required minimum distribution 

14 determined under section 401(a)(9) for the dis15 tribution calendar year ending during the tax16 able year. 

17 ‘‘(3) APPLICATION OF SECTION 72.—Notwith18 standing section 72, in determining the extent to 

19 which an amount is treated as a distribution for 

20 purposes of paragraph (1), the entire amount of the 

21 distribution shall be treated as includible in gross in22 come without regard to paragraph (1) to the extent 

23 that such amount does not exceed the aggregate 

24 amount which would have been so includible if all 

25 amounts in all eligible retirement plans of the indiVerDate Mar 15 2010 03:55 Jan 25, 2012 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3819.IH H3819

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1 vidual were distributed during such taxable year and 

2 all such plans were treated as 1 contract for pur3 poses of determining under section 72 the aggregate 

4 amount which would have been so includible. Proper 

5 adjustments shall be made in applying section 72 to 

6 other distributions in such taxable year and subse7 quent taxable years. 

8 ‘‘(4) ELIGIBLE RETIREMENT PLAN.—For pur9 poses of this subsection, the term ‘eligible retirement 

10 plan’ has the meaning given such term by subsection 

11 (c)(8)(B) (determined without regard to clauses (i) 

12 and (ii) thereof).’’. 

13 (b) TRANSFER TO HEALTH SAVINGS ACCOUNT.— 

14 (1) IN GENERAL.—Subparagraph (A) of section 

15 223(d)(1) of such Code is amended by striking ‘‘or’’ 

16 at the end of clause (i), by striking the period at the 

17 end of clause (ii)(II) and inserting ‘‘, or’’, and by 

18 adding at the end the following new clause: 

19 ‘‘(iii) unless it is in a qualified HSA 

20 transfer described in section 408(d)(10) or 

21 402(m).’’. 

22 (2) EXCISE TAX INAPPLICABLE TO QUALIFIED

23 HSA TRANSFER.—Paragraph (1) of section 4973(g) 

24 of such Code is amended by inserting ‘‘or in a qualiVerDate Mar 15 2010 03:55 Jan 25, 2012 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3819.IH H3819

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1 fied HSA transfer described in section 408(d)(10) or 

2 402(m)’’ after ‘‘or 223(f)(5)’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to distributions made after the 

5 date of the enactment of this Act, in taxable years ending 

6 after such date. 

Æ 


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