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.

This bill would amend the Internal Revenue Code to allow tax-free distributions from Health Savings Accounts (HSAs) for funeral expenses of the account beneficiary, treating such distributions as qualified medical expenses. It defines funeral expenses broadly to include costs related to burial, cremation, transportation, caskets, urns, funeral services, and related items, with a $5,000 lifetime cap per beneficiary. The bill also specifies that funeral expenses incurred within 90 days after the beneficiary’s death will be treated as if they were incurred before death for HSA purposes, and the changes would apply to payments made after the bill’s enactment.

AI summary · The lawmakers haven’t published an official summary of this bill yet, so 52 wrote this one from the bill’s text.