Retirement Health Savings Act of 2015

To amend the Internal Revenue Code of 1986 to permit rollovers from retirement plans to health savings accounts. 1. Short title This Act may be cited as the The Retirement Health Savings Act of 2015 2. Rollovers from retirement plans to health savings accounts (a) In general Part III of subchapter B of chapter 1 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 (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 (2) Eligible individual The term eligible individual . (b) 10 Section 72(t)(2)(A) of such Code is amended by striking or , or (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 223(b)(8)(B)(i)(II) (2) Section 223(b)(4) of such Code is amended by striking subparagraph (C), by striking , and , and (3) Section 401(k)(2)(B)(i) of such Code is amended by striking or and or (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 , and (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.

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 distributions from the 10% penalty for premature retirement plan distributions.