To amend the Internal Revenue Code of 1986 to permit one-time, tax-free distributions from retirement plans to fund health savings accounts.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to exclude from the gross income of an employee covered under a high deductible health care plan a distribution from such employee's qualified retirement plan to fund a health savings account. Exempts such a distribution from the 10 percent penalty on early distributions from qualified retirement plans.…