Bill > HR2436

This bill amends the Internal Revenue Code to expand the definition of qualified distributions from Health Savings Accounts (HSAs) to include funeral expenses for the account beneficiary. Specifically, the bill allows HSA funds to be used tax-free to cover funeral-related costs up to $5,000, with a comprehensive definition of funeral expenses that includes services such as burial, cremation, embalming, casket or urn purchase, hearse service, funeral director's services, grave digging, transportation of remains, and other associated costs. Additionally, the bill provides a 90-day window after an account beneficiary's death during which funeral expenses can be treated as if they were incurred immediately before the beneficiary's death. This change aims to provide HSA account holders with more flexibility in using their tax-advantaged savings to cover end-of-life expenses, potentially easing the financial burden on families during a difficult time. The amendments will apply to amounts paid after the date of the Act's enactment, in taxable years ending after that date.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2436/all-info