I
119THCONGRESS
1
STSESSION H. R. 2436
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.
IN THE HOUSE OF REPRESENTATIVES
MARCH27, 2025
Mr. H
ERNof Oklahoma 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 treat dis-
tributions from health savings accounts for funeral ex-
penses of the account beneficiary as qualified distribu-
tions.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. DISTRIBUTIONS FROM HEALTH SAVINGS AC-3
COUNTS FOR FUNERAL EXPENSES OF THE 4
ACCOUNT BENEFICIARY TREATED AS QUALI-5
FIED DISTRIBUTIONS. 6
(a) I
NGENERAL.—Section 223(d)(2)(A) of the Inter-7
nal Revenue Code of 1986 is amended by striking ‘‘men-8
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•HR 2436 IH
strual care products’’ and inserting ‘‘menstrual care prod-1
ucts, or funeral expenses of the account beneficiary,’’. 2
(b) F
UNERALEXPENSES.—Section 223(d)(2) of such 3
Code is amended by adding at the end the following new 4
subparagraph: 5
‘‘(E) F
UNERAL EXPENSES.— 6
‘‘(i) I
N GENERAL.—For purposes of 7
this paragraph, the term ‘funeral expenses’ 8
means the amounts paid incident to the 9
care and disposition of the remains of an 10
account beneficiary following the death of 11
such beneficiary, including the amounts 12
paid for burial, cremation, embalming, in-13
terment, or inurnment of the remains, 14
preparation of the remains for such burial, 15
cremation, embalming, interment, or 16
inurnment, furnishing of clothing for the 17
remains, furnishing of a casket or urn, a 18
hearse service, a funeral director’s services, 19
a funeral venue fee, transportation of the 20
remains to the place designated for the dis-21
position of the remains, grave digging, fur-22
nishing of a grave liner, and furnishing of 23
a grave plot. 24
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‘‘(ii) LIMITATION.—The aggregate 1
amount treated as funeral expenses under 2
this section with respect to any account 3
beneficiary shall not exceed $5,000.’’. 4
(c) C
OORDINATIONWITHRULES FORTREATMENT 5
OFACCOUNTINCIDENT TODEATH OFBENEFICIARY.— 6
Section 223(f)(8)(B)(ii) of such Code is amended by add-7
ing at the end the following new subclause: 8
‘‘(III) P
ERIOD FOR TREATMENT 9
OF FUNERAL EXPENSES AS INCURRED 10
BEFORE DEATH.—For the 90-day pe-11
riod beginning on the date of the 12
death of an account beneficiary, the 13
funeral expenses (as that term is de-14
fined in subsection (d)(2)(E)) of such 15
beneficiary shall be treated as if in-16
curred immediately before the death 17
of such beneficiary.’’. 18
(d) E
FFECTIVEDATE.—The amendments made by 19
this section shall apply to amounts paid after the date of 20
the enactment of this Act, in taxable years ending after 21
such date. 22
Æ
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