I 
113TH CONGRESS 
2D SESSION 
H. R. 4777 
To amend the Internal Revenue Code of 1986 to modify rules relating to 
health savings accounts. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 30, 2014 
Mr. BURGESS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on the 
Judiciary and Energy and Commerce, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
rules relating to health savings accounts. 
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 Savings Act 
of 2014’’. 
SEC. 2. HEALTH SAVINGS ACCOUNTS FOR CHILDREN. 
(a) IN GENERAL.—Section 223 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
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‘‘(h) CHILD HEALTH SAVINGS ACCOUNTS.— 
‘‘(1) IN
GENERAL.—In the case of an indi-
vidual, in addition to any deduction allowed under 
subsection (a) for any taxable year, there shall be al-
lowed as a deduction under this section an amount 
equal to the aggregate amount paid in cash by the 
taxpayer during the taxable year to a child health 
savings account of a child or grandchild of the tax-
payer. 
‘‘(2) LIMITATIONS.— 
‘‘(A) 
DEDUCTION
LIMITATION.—The 
amount taken into account under paragraph (1) 
with respect to each child or grandchild of the 
taxpayer, as the case may be, for the taxable 
year shall not exceed the sum of the monthly 
limitations with respect to such child for 
months during the taxable year that the child 
is an eligible individual. 
‘‘(B) LIMIT ON ACCOUNTS WITH RESPECT 
TO
INDIVIDUAL.—The aggregate amount of 
contributions which may be made for any tax-
able year to all child health savings accounts es-
tablished and maintained on behalf of a child 
shall not exceed the sum of the monthly limita-
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tions for months during the taxable year that 
the child is an eligible individual. 
‘‘(C) MONTHLY LIMITATION.—The month-
ly limitation for any month with respect to a 
child is 1⁄12 of the amount in effect for the tax-
able year under subsection (c)(2)(A)(ii)(I). 
‘‘(3) TREATMENT OF ACCOUNT WHILE A DE-
PENDENT.—For purposes of this section, except as 
otherwise provided in this subsection, a child health 
savings account established for the benefit of the 
child of a taxpayer shall be treated as a health sav-
ings account of the taxpayer until the first taxable 
year (and each taxable year thereafter) for which no 
deduction under section 151 is allowable to any tax-
payer with respect to such child, after which such 
account shall be treated as a health savings account 
of the child. 
‘‘(4) CHILD HEALTH SAVINGS ACCOUNT.—For 
purposes of this subsection, the term ‘child health 
savings account’ means a health savings account 
designated as a child health savings account and es-
tablished for the benefit of a child of a taxpayer. 
‘‘(5) QUALIFIED
MEDICAL
EXPENSES.—For 
purposes of this section, the term ‘qualified medical 
expenses’ shall, with respect to any child health sav-
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ings account, not include any amounts paid for med-
ical care (as defined in section 213(d)) for any indi-
vidual other than the child for whose benefit the ac-
count is maintained. 
‘‘(6) EXCEPTIONS FOR DISABILITY OR DEATH 
OF CHILD.—If the child becomes disabled within the 
meaning of section 72(m)(7) or dies— 
‘‘(A) subsection (f)(4)(A) shall not apply to 
any subsequent payment or distribution, and 
‘‘(B) the taxpayer may rollover the amount 
in such account to any health savings account 
of the taxpayer or grandparent of the child or 
to any child health savings account of any other 
child of the taxpayer. 
‘‘(7) GUARDIANS.—Any legal guardian of a 
child shall be treated as the parent of such child for 
purposes of this section. 
‘‘(8) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out the purposes of this subsection, including rules 
for determining application of this subsection in the 
case of legal guardians and in the case of parents 
of a child who file separately, are separated, or are 
not married.’’. 
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(b) COORDINATION
WITH
MEANS-TESTED
PRO-
GRAMS.—Amounts in a child health savings account shall 
not be taken into account in determining resources for 
purposes of title XIX of the Social Security Act. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. ALLOWING HSA ROLLOVER TO CHILD OR PARENT 
OF ACCOUNT HOLDER. 
(a) IN GENERAL.—Subparagraph (A) of section 
223(f)(8) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by inserting ‘‘child, parent, or grandparent’’ 
after ‘‘surviving spouse’’, 
(2) by inserting ‘‘child, parent, or grandparent, 
as the case may be,’’ after ‘‘the spouse’’, 
(3) by inserting ‘‘, CHILD, PARENT, OR GRAND-
PARENT’’ after ‘‘SPOUSE’’ in the heading thereof, 
and 
(4) by adding at the end the following: ‘‘In the 
case of a child who acquires such beneficiary’s inter-
est and with respect to whom a deduction under sec-
tion 151 is allowable to another taxpayer for a tax-
able year beginning in the calendar year in which 
such individual’s taxable year begins, such health 
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savings account shall be treated as a child health 
savings account of the child.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. MAXIMUM CONTRIBUTION LIMIT TO HSA IN-
CREASED TO AMOUNT OF DEDUCTIBLE AND 
OUT-OF-POCKET LIMITATION. 
(a) SELF-ONLY COVERAGE.—Subparagraph (A) of 
section 223(b)(2) of the Internal Revenue Code of 1986 
is amended by striking ‘‘$2,250’’ and inserting ‘‘the 
amount in effect under subsection (c)(2)(A)(ii)(I)’’. 
(b) FAMILY COVERAGE.—Subparagraph (B) of sec-
tion 223(b)(2) of such Code is amended by striking 
‘‘$4,500’’ and inserting ‘‘the amount in effect under sub-
section (c)(2)(A)(ii)(II)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 5. TRANSFER OF REQUIRED MINIMUM DISTRIBUTION 
FROM RETIREMENT PLAN TO HEALTH SAV-
INGS ACCOUNT. 
(a) TRANSFER FROM RETIREMENT PLAN.— 
(1) INDIVIDUAL RETIREMENT ACCOUNTS.—Sec-
tion 408(d) of the Internal Revenue Code of 1986 
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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. 
‘‘(C) APPLICATION OF SECTION 72.—Not-
withstanding section 72, in determining the ex-
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tent to which an amount is treated as otherwise 
includible in gross for purposes of subparagraph 
(A), the aggregate amount distributed from an 
individual retirement plan shall be treated as 
includible in gross income to the extent that 
such amount does not exceed the aggregate 
amount which would have been so includible if 
all amounts from all individual retirement plans 
were distributed. Proper adjustments shall be 
made in applying section 72 to other distribu-
tions in such taxable year and subsequent tax-
able 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: 
‘‘(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 
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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 a 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 otherwise includible 
in gross for purposes of paragraph (1), the aggre-
gate amount distributed from an individual retire-
ment plan shall be treated as includible in gross in-
come to the extent that such amount does not exceed 
the aggregate amount which would have been so in-
cludible if all amounts from all individual retirement 
plans were distributed. Proper adjustments shall be 
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made in applying section 72 to other distributions in 
such taxable year and subsequent 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).’’. 
(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. 
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SEC. 6. EQUIVALENT BANKRUPTCY PROTECTIONS FOR 
HEALTH SAVINGS ACCOUNTS AS RETIRE-
MENT FUNDS. 
(a) IN GENERAL.—Section 522 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(r) For purposes of this section, any health savings 
account (as described in section 223 of the Internal Rev-
enue Code of 1986) shall be treated in the same manner 
as an individual retirement account described in section 
408 of such Code.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to cases commencing under title 
11, United States Code, after the date of the enactment 
of this Act. 
SEC. 7. ALLOWANCE OF SILVER AND BRONZE PLANS IN 
CONNECTION WITH HEALTH SAVINGS AC-
COUNTS. 
(a) IN GENERAL.—Section 223 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘a high deductible health plan’’ 
each place it appears and inserting ‘‘an HSA com-
patible health plan’’, 
(2) by striking ‘‘high deductible health plan’’ in 
subsection (b)(8)(A)(ii) and inserting ‘‘HSA compat-
ible health plan’’, and 
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(3) by striking ‘‘the high deductible health 
plan’’ in subsection (c)(1)(A)(ii)(II) and inserting 
‘‘the HSA compatible health plan’’. 
(b) HSA COMPATIBLE HEALTH PLAN DEFINED.— 
Paragraph (2) of section 223(c) of such Code is amended 
by redesignating subparagraphs (A), (B), (C), and (D) as 
subparagraphs (B), (C), (D), and (E) and by inserting 
before subparagraph (B), as so redesignated, the following 
new subparagraph: 
‘‘(A) IN GENERAL.—The term ‘HSA com-
patible health plan’ means— 
‘‘(i) any high deductible health plan, 
‘‘(ii) any plan described in section 
1302(e) of the Patient Protection and Af-
fordable Care Act (relating to catastrophic 
plan), or 
‘‘(iii) any silver or bronze plan which 
was enrolled in through an Exchange es-
tablished under section 1311 of the Patient 
Protection and Affordable Care Act.’’. 
(c) CLERICAL AMENDMENTS.—Section 223 of such 
Code is amended— 
(1) by striking ‘‘IN GENERAL’’ in the heading 
for subsection (c)(2)(B), as redesignated by sub-
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section (b) of this Act, and inserting ‘‘HIGH DE-
DUCTIBLE HEALTH PLAN’’, 
(2) by striking ‘‘HIGH
DEDUCTIBLE
HEALTH 
PLAN’’ in the heading for subsection (b)(8)(B) and 
inserting ‘‘HSA COMPATIBLE HEALTH PLAN’’, and 
(3) by striking ‘‘HIGH DEDUCTIBLE HEALTH 
PLAN’’ in the heading for subsection (c)(2) and in-
serting ‘‘HSA COMPATIBLE HEALTH PLAN’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 8. IDENTIFICATION OF HSA COMPATIBLE PLANS. 
Section 1103(b) of the Patient Protection and Af-
fordable Care Act (42 U.S.C. 18003(b)) is amended by 
adding at the end the following new paragraph: 
‘‘(3) IDENTIFICATION
OF
HSA
COMPATIBLE 
PLANS.—Beginning for plan year 2015, the format 
described in paragraph (1) shall require that infor-
mation on a coverage option described in subsection 
(a)(2) that is an HSA compatible health plan (as de-
fined in section 223(c)(2) of the Internal Revenue 
Code of 1986) identifies such plan as a plan that 
satisfies the requirement of section 223(c)(1)(A)(i) 
of such Code.’’. 
Æ 
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