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Tax Relief: Funeral Expenses from Health Savings Accounts (HSA)

New rules allow funds from Health Savings Accounts (HSA) to be used for the beneficiary's funeral expenses without additional taxes. This means citizens can more easily finance burial costs using their accumulated funds. The maximum amount that can be deducted this way is $5,000.
Key points
Ability to use HSA funds for funeral expenses without additional taxes.
A limit of $5,000 per beneficiary for funeral expenses from HSA.
Funeral expenses incurred within 90 days after the beneficiary's death will be treated as incurred immediately before death, simplifying settlements.
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Additional Information
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.
Print number: HR 7693
Sponsor: Rep. Hern, Kevin [R-OK-1]
Process start date: 2024-03-15