110 STAT. 2048
PUBLIC LAW 104-191—AUG. 21, 1996
"(C) PENALTY FOR FAILURE TO FILE REPORT. —The penalty provided in section 6693(a) shall apply to any report
required by this paragraph, except that—
"(i) such section shall be applied by substituting
'$25' for '$50', and
"(ii) the maximum penalty imposed on any trustee
shall not exceed $5,000.
"(D) AGGREGATION OF ACCOUNTS.^TO the extent practicable, in determining the number of medical savings
accounts on the basis of the reports under this paragraph,
all medical savings accounts of an individual shall be
treated as 1 account and all accoiuits of individuals who
are married to each other shall be treated as 1 account.
"(5) DATE OF MAKING DETERMINATIONS. —Any determination
under this subsection that a calendar year is a cut-off year
shall be made by the Secretary and shall be published not
later than October 1 of such year.".
(b) DEDUCTION ALLOWED WHETHER OR NOT INDIVIDUAL
ITEMIZES OTHER DEDUCTIONS.—Subsection (a) of section 62 is
amended by inserting after paragraph (15) the following new paragraph:
"(16) MEDICAL SAVINGS ACCOUNTS.—The deduction allowed
by section 220.".
(c) EXCLUSIONS FOR EMPLOYER CONTRIBUTIONS TO MEDICAL
SAVINGS ACCOUNTS.—
(1) EXCLUSION FROM INCOME TAX.— The text of section 106
(relating to contributions by employer to accident and health
plans) is amended to read as follows:
"(a) GENERAL RULE. — Except as otherwise provided in this section, gross income of an employee does not include employer-provided coverage under an accident or health plan.
" (b) CONTRIBUTIONS TO MEDICAL SAVINGS ACCOUNTS. —
"(1) IN GENERAL.— In the case of an employee who is em
eligible individual, amounts contributed by such employee's
employer to any medical savings account of such employee
shall be treated as employer-provided coverage for medical
expenses under an accident or health plan to the extent such
amounts do not exceed the limitation under section 220(b)(1)
(determined without regard to this subsection) which is
applicable to such employee for such taxable year.
" (2) No CONSTRUCTIVE RECEIPT.— No amount shall be
included in the gross income of any employee solely because
the employee may choose between the contributions referred
to in paragraph (1) and employer contributions to another
health plan of the employer.
"(3) SPECIAL RULE FOR DEDUCTION OF EMPLOYER CONTRIBU-
TIONS.—Any employer contribution to a medical savings
account, if otherwise allowable as a deduction under this chapter, shall be allowed only for the taxable year in which paid.
" (4) EMPLOYER MSA CONTRIBUTIONS REQUIRED TO BE SHOWN
ON RETURN. —Every individual required to file a return under
section 6012 for the teixable year shall include on such return
the aggregate amount contributed by employers to the medical
savings accoiuits of such individual or such individual's spouse
for such taxable year.
" (5) MSA CONTRIBUTIONS NOT PART OF COBRA COVERAGE.—
Paragraph (1) shall not apply for purposes of section 4980B.
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