Section 1 Short title
This Act may be cited as the “The Retirement Health Savings Act of 2015”.
The Retirement Health Savings Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to permit rollovers from retirement plans to health savings accounts.
Sec. 2 Rollovers from retirement plans to health savings accounts
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139E the following new section:
“139F. HSA funding distributions
“(a) In general—In the case of an eligible individual, gross income does not include a qualified HSA funding distribution.
“(b) Qualified HSA funding distribution—For purposes of this section, the term qualified HSA funding distribution means any distribution from an eligible retirement plan of an eligible individual to the extent that such distribution is contributed to a health savings account of such individual (or of the surviving spouse, a dependent of the surviving spouse, or alternate payee (as defined in section 414(p)(8)) of such individual) not later than the 60th day after the day on which such individual (or such surviving spouse, dependent, or alternate payee) receives such distribution or in a direct trustee-to-trustee transfer.
“(c) Distribution treated as rollover to HSA—For purposes of sections 223 and 4973(g), a qualified HSA funding distribution shall be treated as a rollover contribution described in section 223(f)(5).
“(d) Definitions—For purposes of this section—
“(1) Eligible retirement plan—The term eligible retirement plan has the meaning given such term by section 402(c)(8)(B), except that such term shall also include an eligible deferred compensation plan maintained by an eligible employer described in section 457(e)(1)(B).
“(2) Eligible individual—The term eligible individual has the meaning given such term by section 223(c)(1).”
10-Percent penalty on early distributions not To apply— Section 72(t)(2)(A) of such Code is amended by striking “or” at the end of clause (vii), by striking the period at the end of clause (viii) and inserting “, or”, and by inserting after clause (viii) the following new clause:
“(ix) a qualified HSA funding distribution (as defined by section 139F(b)).”
Repeal of one-Time qualified HSA funding distributions from IRAs— Section 408(d) of such Code is amended by striking paragraph (9).
Conforming amendments—
Section 26(b)(2)(S) of such Code is amended by striking “, 223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II)” and inserting “and 223(b)(8)(B)(i)(II)”.
Section 223(b)(4) of such Code is amended by striking subparagraph (C), by striking “, and” at the end of subparagraph (B) and inserting a period, and by inserting “, and” at the end of subparagraph (A).
Section 401(k)(2)(B)(i) of such Code is amended by striking “or” at the end of subclause (IV), by striking “and” at the end of subclause (V) and inserting “or”, and by inserting after subclause (V) the following new subclause:
“(VI) the funding of a health savings account under section 139F, and”
Section 402(c)(4) of such Code is amended by striking “and” at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting “, and”, and by inserting after subparagraph (C) the following new subparagraph:
“(D) any qualified HSA funding distribution (as defined by section 139F(b)).”
Section 403(a) of such Code is amended by adding at the end the following new paragraph:
“(6) Special rule for qualified HSA funding distribution—To the extent provided in section 139F, paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.”
Section 403(b) of such Code is amended by adding at the end the following new paragraph:
“(15) Special rule for qualified HSA funding distribution—To the extent provided in section 139F, paragraph (1) shall not apply to the amount distributed under the contract which is otherwise includible in gross income under this subsection.”
Section 457(a) of such Code is amended by adding at the end the following new paragraph:
“(4) Special rule for qualified HSA funding distribution—To the extent provided in section 139F, paragraph (1) shall not apply to amounts otherwise includible in gross income under this subsection.”
Effective date— The amendments made by this section shall apply to distributions in taxable years beginning after the date of the enactment of this Act.