H.R. 2436

119th CONGRESS 1st Session

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 · March 27, 2025 · Sponsor: Mr. Hern of Oklahoma · Committee: Committee on Ways and Means

Table of contents

• H.R. 2436
  • SEC. 1. Distributions from health savings accounts for funeral expenses of the account beneficiary treated as qualified distributions

SEC. 1. Distributions from health savings accounts for funeral expenses of the account beneficiary treated as qualified distributions

• (a) In general
  • of the Internal Revenue Code of 1986 is amended by striking menstrual care productsand inserting menstrual care products, or funeral expenses of the account beneficiary,. Section 223(d)(2)(A)
• (b) Funeral expenses
  • Section 223(d)(2) of such Code is amended by adding at the end the following new subparagraph:
    • (E) Funeral expenses
      • (i) For purposes of this paragraph, the term funeral expenses means the amounts paid incident to the care and disposition of the remains of an account beneficiary following the death of such beneficiary, including the amounts paid for burial, cremation, embalming, interment, or inurnment of the remains, preparation of the remains for such burial, cremation, embalming, interment, or inurnment, furnishing of clothing for the remains, furnishing of a casket or urn, a hearse service, a funeral director’s services, a funeral venue fee, transportation of the remains to the place designated for the disposition of the remains, grave digging, furnishing of a grave liner, and furnishing of a grave plot.
      • (ii) The aggregate amount treated as funeral expenses under this section with respect to any account beneficiary shall not exceed $5,000.
• (c) Coordination with rules for treatment of account incident to death of beneficiary
  • Section 223(f)(8)(B)(ii) of such Code is amended by adding at the end the following new subclause:
    • For the 90-day period beginning on the date of the death of an account beneficiary, the funeral expenses (as that term is defined in subsection (d)(2)(E)) of such beneficiary shall be treated as if incurred immediately before the death of such beneficiary.
• (d) Effective date
  • The amendments made by this section shall apply to amounts paid after the date of the enactment of this Act, in taxable years ending after such date.