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.

This bill amends the Internal Revenue Code to allow distributions from health savings accounts (HSAs) for funeral expenses of the account beneficiary to be treated as qualified distributions, meaning they can be withdrawn tax-free. The bill defines funeral expenses to include burial, cremation, embalming, casket or urn, funeral director services, and related costs, with a maximum aggregate limit of $5,000 per account beneficiary. It also provides a 90-day grace period after death during which funeral expenses can be treated as incurred before the beneficiary's death for tax purposes.

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