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 sav-
ings 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 retire-
ment plan to a health savings account. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Health Freedom for 
Seniors Act’’. 
SEC. 2. TRANSFER OF REQUIRED MINIMUM DISTRIBUTION 
FROM RETIREMENT PLAN TO HEALTH SAV-
INGS ACCOUNT. 
(a) TRANSFER FROM RETIREMENT PLAN.— 
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(1) INDIVIDUAL RETIREMENT ACCOUNTS.—Sec-
tion 408(d) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new 
paragraph: 
‘‘(10) 
REQUIRED
MINIMUM
DISTRIBUTION 
TRANSFERRED TO HEALTH SAVINGS ACCOUNT.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who has attained the age of 701⁄2 and 
who elects the application of this paragraph for 
a taxable year, gross income of the individual 
for the taxable year does not include a qualified 
HSA transfer to the extent such transfer is oth-
erwise includible in gross income. 
‘‘(B) QUALIFIED
HSA
TRANSFER.—For 
purposes of this paragraph, the term ‘qualified 
HSA transfer’ means any distribution from an 
individual retirement plan— 
‘‘(i) to a health savings account of the 
individual in a direct trustee-to-trustee 
transfer, 
‘‘(ii) to the extent such distribution 
does not exceed the required minimum dis-
tribution 
determined 
under 
section 
401(a)(9) for the distribution calendar 
year ending during the taxable year. 
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‘‘(C) APPLICATION OF SECTION 72.—Not-
withstanding section 72, in determining the ex-
tent to which an amount is treated as a dis-
tribution for purposes of paragraph (1), the en-
tire amount of the distribution shall be treated 
as includible in gross income without regard to 
paragraph (1) to the extent that such amount 
does not exceed the aggregate amount which 
would have been so includible if all amounts in 
all individual retirement plans of the individual 
were distributed during such taxable year and 
all such plans were treated as 1 contract for 
purposes of determining under section 72 the 
aggregate amount which would have been so in-
cludible. Proper adjustments shall be made in 
applying section 72 to other distributions in 
such taxable year and subsequent taxable years. 
‘‘(D) COORDINATION.—An election may 
not be made under subparagraph (A) for a tax-
able year for which an election is in effect 
under paragraph (9).’’. 
(2) OTHER RETIREMENT PLANS.—Section 402 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection: 
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‘‘(m) REQUIRED MINIMUM DISTRIBUTION TRANS-
FERRED TO HEALTH SAVINGS ACCOUNT.— 
‘‘(1) IN GENERAL.—In the case of an individual 
who has attained the age of 701⁄2 and who elects the 
application of this subsection for a taxable year, 
gross income of the individual for the taxable year 
does not include a qualified HSA transfer to the ex-
tent such transfer is otherwise includible in gross in-
come. 
‘‘(2) QUALIFIED
HSA
TRANSFER.—For pur-
poses of this subsection, the term ‘qualified HSA 
transfer’ means any distribution from an individual 
retirement plan— 
‘‘(A) to a health savings account of the in-
dividual in a direct trustee-to-trustee transfer, 
‘‘(B) to the extent such distribution does 
not exceed the required minimum distribution 
determined under section 401(a)(9) for the dis-
tribution calendar year ending during the tax-
able year. 
‘‘(3) APPLICATION OF SECTION 72.—Notwith-
standing section 72, in determining the extent to 
which an amount is treated as a distribution for 
purposes of paragraph (1), the entire amount of the 
distribution shall be treated as includible in gross in-
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come without regard to paragraph (1) to the extent 
that such amount does not exceed the aggregate 
amount which would have been so includible if all 
amounts in all eligible retirement plans of the indi-
vidual were distributed during such taxable year and 
all such plans were treated as 1 contract for pur-
poses of determining under section 72 the aggregate 
amount which would have been so includible. Proper 
adjustments shall be made in applying section 72 to 
other distributions in such taxable year and subse-
quent taxable years. 
‘‘(4) ELIGIBLE RETIREMENT PLAN.—For pur-
poses of this subsection, the term ‘eligible retirement 
plan’ has the meaning given such term by subsection 
(c)(8)(B) (determined without regard to clauses (i) 
and (ii) thereof).’’. 
(b) TRANSFER TO HEALTH SAVINGS ACCOUNT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
223(d)(1) of such Code is amended by striking ‘‘or’’ 
at the end of clause (i), by striking the period at the 
end of clause (ii)(II) and inserting ‘‘, or’’, and by 
adding at the end the following new clause: 
‘‘(iii) unless it is in a qualified HSA 
transfer described in section 408(d)(10) or 
402(m).’’. 
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(2) EXCISE TAX INAPPLICABLE TO QUALIFIED 
HSA TRANSFER.—Paragraph (1) of section 4973(g) 
of such Code is amended by inserting ‘‘or in a quali-
fied HSA transfer described in section 408(d)(10) or 
402(m)’’ after ‘‘or 223(f)(5)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions made after the 
date of the enactment of this Act, in taxable years ending 
after such date. 
Æ 
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