I 

118TH CONGRESS 

2D SESSION H. R. 7693 

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 15, 2024 

Mr. HERN 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. 

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

3 SECTION 1. DISTRIBUTIONS FROM HEALTH SAVINGS AC4 COUNTS FOR FUNERAL EXPENSES OF THE 

5 ACCOUNT BENEFICIARY TREATED AS QUALI6 FIED DISTRIBUTIONS. 

7 (a) IN GENERAL.—Section 223(d)(2)(A) of the Inter8 nal Revenue Code of 1986 (26 U.S.C. 223(d)(2)(A)) is 


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1 amended by striking ‘‘menstrual care products’’ and in2 serting ‘‘menstrual care products, or funeral expenses of 

3 the account beneficiary,’’. 

4 (b) FUNERAL EXPENSES.—Section 223(d)(2) of the 

5 Internal Revenue Code of 1986 (26 U.S.C. 223(d)(2)) is 

6 amended by adding at the end the following: 

7 ‘‘(E) FUNERAL EXPENSES.— 

8 ‘‘(i) IN GENERAL.—For purposes of 

9 this paragraph, the term ‘funeral expenses’ 

10 means the amounts paid incident to the 

11 care and disposition of the remains of an 

12 account beneficiary following the death of 

13 such beneficiary, including the amounts 

14 paid for burial, cremation, embalming, in15 terment, or inurnment of the remains, 

16 preparation of the remains for such burial, 

17 cremation, embalming, interment, or 

18 inurnment, furnishing of clothing for the 

19 remains, furnishing of a casket or urn, a 

20 hearse service, a funeral director’s services, 

21 a funeral venue fee, transportation of the 

22 remains to the place designated for the dis23 position of the remains, grave digging, fur24 nishing of a grave liner, and furnishing of 

25 a grave plot. 


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1 ‘‘(ii) LIMITATION.—The aggregate 

2 amount treated as funeral expenses under 

3 this section with respect to any account 

4 beneficiary shall not exceed $5,000.’’. 

5 (c) COORDINATION WITH RULES FOR TREATMENT

6 OF ACCOUNT INCIDENT TO DEATH OF BENEFICIARY.— 

7 Section 223(f)(8)(B)(ii) of the Internal Revenue Code of 

8 1986 (26 U.S.C. 223(f)(8)(B)(ii)) is amended by adding 

9 at the end the following: 

10 ‘‘(III) PERIOD FOR TREATMENT

11 OF FUNERAL EXPENSES AS INCURRED

12 BEFORE DEATH.—For the 90-day pe13 riod beginning on the date of the 

14 death of an account beneficiary, the 

15 funeral expenses (as that term is de16 fined in subsection (d)(2)(E)) of such 

17 beneficiary shall be treated as if in18 curred immediately before the death 

19 of such beneficiary.’’. 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to amounts paid after the date of 

22 the enactment of this Act, in taxable years ending after 

23 such date. 

Æ 


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