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.
HSA Use for Funeral Expenses
This bill is currently in the early stages of the legislative process and is being reviewed by the House Committee on Ways and Means. No further actions have been scheduled at this time. The bill is considered active as it waits for the committee to decide on its next steps.
Legislative Progress
Most small tax bills like this do not pass on their own and must wait to be added to a much larger tax package.
Key Points
- This bill would let people use money from their Health Savings Accounts (HSAs) to pay for funeral costs. Right now, HSA money is mostly for medical bills. If you use it for other things, you usually have to pay extra taxes.
- The plan covers many different costs like burial, cremation, caskets, and funeral director fees. It also includes the price of a grave plot and moving the body to the cemetery.
- There is a $5,000 limit on how much can be spent this way. This helps families cover the high cost of a funeral without using up all the savings meant for healthcare.
- Families would have 90 days after a loved one dies to use the HSA money for these expenses. This ensures the money stays tax-free during a difficult time for the family.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
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.
Data Sources
Sponsor
Cosponsors
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