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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7693 Introduced in House (IH)]

<DOC>

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.

    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 (26 U.S.C. 223(d)(2)(A)) 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 the Internal Revenue 
Code of 1986 (26 U.S.C. 223(d)(2)) is amended by adding at the end the 
following:
                    ``(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 the Internal Revenue 
Code of 1986 (26 U.S.C. 223(f)(8)(B)(ii)) is amended by adding at the 
end the following:
                                    ``(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.
                                 <all>
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