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) to pay for funeral expenses of the account beneficiary without tax penalties. The bill defines qualifying funeral expenses to include burial, cremation, embalming, casket or urn, funeral director services, and related costs, with a $5,000 aggregate limit per beneficiary. It also provides a 90-day grace period after death during which funeral expenses can be treated as incurred before death for HSA distribution purposes.

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