Qualified Trump account seeding distributions from health savings accounts

(a) In general Section 223(e) of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: (10) Qualified Trump account seeding distributions (A) In general Paragraph (2) shall not apply to any qualified Trump account seeding distribution. (B) Qualified Trump account seeding distribution For purposes of this paragraph, the term qualified Trump account seeding distribution means any amount which is distributed in a direct trustee-to-trustee transfer from a health savings account of an account beneficiary to a Trump account maintained for the benefit of any eligible individual designated by the account beneficiary. (C) Aggregate limitation The aggregate amount of distributions which may be treated as qualified Trump account seeding distributions with respect to any eligible individual shall not exceed $5,000, determined by taking into account all such distributions from all health savings accounts of all account beneficiaries with respect to such individual. (D) Definitions For purposes of this paragraph, the terms Trump account and eligible individual have the meaning given such terms in section 530A(b).. (b) Treatment as exempt contributions Section 530A(c)(2)(B) of such Code is amended— (1) in clause (ii), by striking or at the end, (2) in clause (iii), by striking the period at the end and inserting, or, and (3) by adding at the end the following new clause: (iv) any qualified Trump account seeding distribution (as defined in section 223(e)(10)(B)).. (c) Effective date The amendments made by this section shall apply to distributions made in taxable years beginning after the date of the enactment of this Act.