Summary of Bill HR 7693
Bill 118 hr 7693, also known as the Funeral Expenses for Health Savings Accounts Act, aims to amend the Internal Revenue Code of 1986. The main purpose of this bill is to allow distributions from health savings accounts (HSAs) to be used for funeral expenses of the account beneficiary.
Currently, HSAs are tax-advantaged accounts that individuals can use to save money for medical expenses. However, under current law, distributions from HSAs for non-medical expenses are subject to taxes and penalties. This bill seeks to change that by allowing distributions for funeral expenses to be considered qualified distributions, meaning they would not be subject to taxes or penalties.
The bill is designed to provide individuals with more flexibility in how they can use their HSA funds, particularly in times of need such as when a loved one passes away. By allowing for the use of HSA funds for funeral expenses, this bill aims to ease the financial burden on individuals and families during a difficult time.
Overall, the Funeral Expenses for Health Savings Accounts Act is a bipartisan effort to provide individuals with more options for using their HSA funds and to ensure that they can access these funds when they need them most.