I 

114TH CONGRESS 

1ST SESSION H. R. 975 

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 

FEBRUARY 13, 2015 

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 the Internal Revenue Code of 1986 

3 is amended by adding at the end the following new 

4 paragraph: 

5 ‘‘(10) REQUIRED MINIMUM DISTRIBUTION

6 TRANSFERRED TO HEALTH SAVINGS ACCOUNT.— 

7 ‘‘(A) IN GENERAL.—In the case of an individual who has attained the age of 701 8 ⁄2 and 

9 who elects the application of this paragraph for 

10 a taxable year, gross income of the individual 

11 for the taxable year does not include a qualified 

12 HSA transfer to the extent such transfer is oth13 erwise includible in gross income. 

14 ‘‘(B) QUALIFIED HSA TRANSFER.—For 

15 purposes of this paragraph, the term ‘qualified 

16 HSA transfer’ means any distribution from an 

17 individual retirement plan— 

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

19 individual in a direct trustee-to-trustee 

20 transfer, 

21 ‘‘(ii) to the extent such distribution 

22 does not exceed the required minimum dis23 tribution determined under section 

24 401(a)(9) for the distribution calendar 

25 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 years. 

18 ‘‘(D) COORDINATION.—An election may 

19 not be made under subparagraph (A) for a tax20 able year for which an election is in effect 

21 under paragraph (9).’’. 

22 (2) OTHER RETIREMENT PLANS.—Section 402 

23 of the Internal Revenue Code of 1986 is amended by 

24 adding at the end the following new subsection: 


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1 ‘‘(m) REQUIRED MINIMUM DISTRIBUTION TRANS2 FERRED TO HEALTH SAVINGS ACCOUNT.— 

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

who has attained the age of 701 4 ⁄2 and who elects the 

5 application of this subsection for a taxable year, 

6 gross income of the individual for the taxable year 

7 does not include a qualified HSA transfer to the ex8 tent such transfer is otherwise includible in gross in9 come. 

10 ‘‘(2) QUALIFIED HSA TRANSFER.—For pur11 poses of this subsection, the term ‘qualified HSA 

12 transfer’ means any distribution from an individual 

13 retirement plan— 

14 ‘‘(A) to a health savings account of the in15 dividual in a direct trustee-to-trustee transfer, 

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

17 not exceed the required minimum distribution 

18 determined under section 401(a)(9) for the dis19 tribution calendar year ending during the tax20 able year. 

21 ‘‘(3) APPLICATION OF SECTION 72.—Notwith22 standing section 72, in determining the extent to 

23 which an amount is treated as a distribution for 

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

25 distribution shall be treated as includible in gross inVerDate Sep 11 2014 03:45 Feb 27, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H975.IH H975

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1 come without regard to paragraph (1) to the extent 

2 that such amount does not exceed the aggregate 

3 amount which would have been so includible if all 

4 amounts in all eligible retirement plans of the indi5 vidual were distributed during such taxable year and 

6 all such plans were treated as 1 contract for pur7 poses of determining under section 72 the aggregate 

8 amount which would have been so includible. Proper 

9 adjustments shall be made in applying section 72 to 

10 other distributions in such taxable year and subse11 quent taxable years. 

12 ‘‘(4) ELIGIBLE RETIREMENT PLAN.—For pur13 poses of this subsection, the term ‘eligible retirement 

14 plan’ has the meaning given such term by subsection 

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

16 and (ii) thereof).’’. 

17 (b) TRANSFER TO HEALTH SAVINGS ACCOUNT.— 

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

19 223(d)(1) of such Code is amended by striking ‘‘or’’ 

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

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

22 adding at the end the following new clause: 

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

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

25 402(m).’’. 


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1 (2) EXCISE TAX INAPPLICABLE TO QUALIFIED

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

3 of such Code is amended by inserting ‘‘or in a quali4 fied HSA transfer described in section 408(d)(10) or 

5 402(m)’’ after ‘‘or 223(f)(5)’’. 

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

7 this section shall apply to distributions made after the 

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

9 after such date. 

Æ 


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