PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2045 "(h) REPORTS.— The Secretary may require the trustee of a medical savings account to msike such reports regarding such account to the Secretary and to the account holder with respect to contributions, distributions, and such other matters as the Secretary determines appropriate. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary. "(i) LIMITATION ON NUMBER OF TAXPAYERS HAVING MEDICAL SAVINGS ACCOUNTS.— "(1) IN GENERAL.— Except as provided in paragraph (5), no individual shall be treated as an eligible individual for any taxable year beginning after the cut-off year unless— "(A) such individual was an active MSA participant for any taxable year ending on or before the close of the cut-off year, or "(B) such individual first became an active MSA participant for a taxable year ending after the cut-off year by reason of coverage under a high deductible health plan of an MSA-participating employer. "(2) CUT-OFF YEAR.— For purposes of paragraph (1), the term 'cut-off year' means the earlier of— "(A) calendar year 2000, or "(B) the first calendar year before 2000 for which the Secretary determines under subsection (j) that the numerical limitation for such year has been exceeded. "(3) ACTIVE MSA PARTICIPANT.—For purposes of this subsection— "(A) IN GENERAL.—The term 'active MSA participant' means, with respect to any taxable year, any individual who is the account holder of any medical savings account into which any contribution was made which was excludable from gross income under section 106(b), or allowable as a deduction under this section, for such taxable year. "(B) SPECIAL RULE FOR CUT-OFF YEARS BEFORE 2000.— In the case of a cut-off year before 2000— "(i) an individual shall not be treated as an eligible individual for any month of such year or an active MSA participant under paragraph (1)(A) unless such individual is, on or before the cut-off date, covered under a high deductible health plan, and "(ii) an employer shall not be treated as an MSA- participating employer unless the employer, on or before the cut-off date, offered coverage under a high deductible health plan to any employee. "(C) CUT-OFF DATE.— For purposes of subparagraph (B)— "(i) IN GENERAL.— Except as otherwise provided in this subparagraph, the cut-off date is October 1 of the cut-off year. " (ii) EMPLOYEES WITH ENROLLMENT PERIODS AFTER OCTOBER 1. —In the case of an individual described in subclause (I) of subsection (c)(l)(A)(iii), if the regularly scheduled enrollment period for health plans of the individual's employer occurs during the last 3 months of the cut-off year, the cut-off date is December 31 of the cut-off yesir.
�
