Health Freedom for Seniors Act - Amends the Internal Revenue Code to allow tax-free transfers of required distributions after age 70 1/2 from an individual retirement account (IRA) and other tax-exempt retirement accounts to a health savings account. Exempts such transfers from the excise tax on excess contributions to tax-favored accounts and annuities.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3819 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 3819
To amend the Internal Revenue Code of 1986 to allow the transfer of
required minimum distributions from a retirement plan to a health
savings account.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2012
Mr. Huizenga of Michigan introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow the transfer of
required minimum distributions from a retirement plan to a health
savings account.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Freedom for Seniors Act''.
SEC. 2. TRANSFER OF REQUIRED MINIMUM DISTRIBUTION FROM RETIREMENT PLAN
TO HEALTH SAVINGS ACCOUNT.
(a) Transfer From Retirement Plan.--
(1) Individual retirement accounts.--Section 408(d) of such
Code is amended by adding at the end the following new
paragraph:
``(10) Required minimum distribution transferred to health
savings account.--
``(A) In general.--In the case of an individual who
has attained the age of 70\1/2\ and who elects the
application of this paragraph for a taxable year, gross
income of the individual for the taxable year does not
include a qualified HSA transfer to the extent such
transfer is otherwise includible in gross income.
``(B) Qualified hsa transfer.--For purposes of this
paragraph, the term `qualified HSA transfer' means any
distribution from an individual retirement plan--
``(i) to a health savings account of the
individual in a direct trustee-to-trustee
transfer,
``(ii) to the extent such distribution does
not exceed the required minimum distribution
determined under section 401(a)(9) for the
distribution calendar year ending during the
taxable year.
``(C) Application of section 72.--Notwithstanding
section 72, in determining the extent to which an
amount is treated as a distribution for purposes of
paragraph (1), the entire amount of the distribution
shall be treated as includible in gross income without
regard to paragraph (1) to the extent that such amount
does not exceed the aggregate amount which would have
been so includible if all amounts in all individual
retirement plans of the individual were distributed
during such taxable year and all such plans were
treated as 1 contract for purposes of determining under
section 72 the aggregate amount which would have been
so includible. Proper adjustments shall be made in
applying section 72 to other distributions in such
taxable year and subsequent taxable years.''.
(2) Other retirement plans.--Section 402 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(m) Required Minimum Distribution Transferred to Health Savings
Account.--
``(1) In general.--In the case of an individual who has
attained the age of 70\1/2\ and who elects the application of
this subsection for a taxable year, gross income of the
individual for the taxable year does not include a qualified
HSA transfer to the extent such transfer is otherwise
includible in gross income.
``(2) Qualified hsa transfer.--For purposes of this
subsection, the term `qualified HSA transfer' means any
distribution from an retirement plan--
``(A) to a health savings account of the individual
in a direct trustee-to-trustee transfer,
``(B) to the extent such distribution does not
exceed the required minimum distribution determined
under section 401(a)(9) for the distribution calendar
year ending during the taxable year.
``(3) Application of section 72.--Notwithstanding section
72, in determining the extent to which an amount is treated as
a distribution for purposes of paragraph (1), the entire amount
of the distribution shall be treated as includible in gross
income without regard to paragraph (1) to the extent that such
amount does not exceed the aggregate amount which would have
been so includible if all amounts in all eligible retirement
plans of the individual were distributed during such taxable
year and all such plans were treated as 1 contract for purposes
of determining under section 72 the aggregate amount which
would have been so includible. Proper adjustments shall be made
in applying section 72 to other distributions in such taxable
year and subsequent taxable years.
``(4) Eligible retirement plan.--For purposes of this
subsection, the term `eligible retirement plan' has the meaning
given such term by subsection (c)(8)(B) (determined without
regard to clauses (i) and (ii) thereof).''.
(b) Transfer to Health Savings Account.--
(1) In general.--Subparagraph (A) of section 223(d)(1) of
such Code is amended by striking ``or'' at the end of clause
(i), by striking the period at the end of clause (ii)(II) and
inserting ``, or'', and by adding at the end the following new
clause:
``(iii) unless it is in a qualified HSA
transfer described in section 408(d)(10) or
402(m).''.
(2) Excise tax inapplicable to qualified hsa transfer.--
Paragraph (1) of section 4973(g) of such Code is amended by
inserting ``or in a qualified HSA transfer described in section
408(d)(10) or 402(m)'' after ``or 223(f)(5)''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act, in taxable years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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