110 STAT. 2046 PUBLIC LAW 104-191—AUG. 21, 1996 "(iii) SELF-EMPLOYED INDIVIDUALS.— In the case of an individual described in subclause (II) of subsection (c)(l)(A)(iii), the cut-off date is November 1 of the cutoff year. "(iv) SPECIAL RULES FOR 1997.— I f 1997 is a cutoff year by reason of subsection (j)(l)( A)— "(I) each of the cut-off dates under clauses (i) and (iii) shall be 1 month earlier than the date determined without regard to this clause, and "(11) clause (ii) shall be applied by substituting '4 months' for '3 months'. "(4) MSA-PARTICIPATING EMPLOYER. — For purposes of this subsection, the term 'MSA-participating employer' means any small employer if— "(A) such employer made any contribution to the medical savings account of any employee during the cut-off year or any preceding calendar year which was excludable from gross income under section 106(b), or "(B) at least 20 percent of the employees of such employer who are eligible individuals for any month of the cut-off year by reason of coverage under a high deductible health plsin of such employer each made a contribution of at least $100 to their medical savings accounts for any taxable year ending with or within the cut-off year which was allowable as a deduction under this section, "(5) ADDITIONAL ELIGIBILITY AFTER CUT-OFF YEAR. —I f the Secretary determines under subsection (j)(2)(A) that the numerical limit for the calendar year following a cut-off year described in paragraph (2)(B) has not been exceeded— "(A) this subsection shall not apply to any otherwise eligible individual who is covered under a high deductible health plan during the first 6 months of the second calendar year following the cut-off year (and such individual shall be treated as an active MSA participant for purposes of this subsection if a contribution is made to any medical savings account with respect to such coverage), and "(B) any employer who offers coverage under a high deductible health plan to any employee during such 6- month period shall be treated as an MSA-participating employer for purposes of this subsection if the requirements of paragraph (4) are met with respect to such coverage. For purposes of this paragraph, subsection (j)(2)(A) shall be applied for 1998 by substituting 750,000' for '600,000'. " 0") DETERMINATION OF WHETHER NUMERICAL LIMITS ARE EXCEEDED.— "(1) DETERMINATION OF WHETHER LIMIT EXCEEDED FOR 1997.— The numerical limitation for 1997 is exceeded if, based on the reports required under paragraph (4), the number of medical savings accounts established as of— "(A) April 30, 1997, exceeds 375,000, or "(B) June 30, 1997, exceeds 525,000. "(2) DETERMINATION OF WHETHER LIMIT EXCEEDED FOR 1998 OR 1999. — "(A) IN GENERAL.—The numerical limitation for 1998 or 1999 is exceeded if the sum of—
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