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.

Key Provisions

• Lets people use money from their Health Savings Accounts (HSAs) to pay for funeral expenses without paying taxes or penalties on those withdrawals.
• Sets a limit of $5,000 for the total amount of funeral expenses that can be paid from an HSA for one person.
• Defines "funeral expenses" to include costs like burial, cremation, embalming, caskets, urns, hearse services, funeral director fees, and grave plots.
• Treats funeral expenses paid within 90 days after an HSA holder's death as if they were paid before death, ensuring they qualify for the tax-free benefit.