PUBLIC LAW 108–173—DEC. 8, 2003
117 STAT. 2477
(1) EXCLUSION FROM INCOME TAX.—Section 106 of such Code (relating to contributions by employer to accident and health plans) is amended by adding at the end the following new subsection: ‘‘(d) CONTRIBUTIONS TO HEALTH SAVINGS ACCOUNTS.— ‘‘(1) IN GENERAL.—In the case of an employee who is an eligible individual (as defined in section 223(c)(1)), amounts contributed by such employee’s employer to any health savings account (as defined in section 223(d)) 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 223(b) (determined without regard to this subsection) which is applicable to such employee for such taxable year. ‘‘(2) SPECIAL RULES.—Rules similar to the rules of paragraphs (2), (3), (4), and (5) of subsection (b) shall apply for purposes of this subsection. ‘‘(3) CROSS REFERENCE.—
26 USC 106.
‘‘For penalty on failure by employer to make comparable contributions to the health savings accounts of comparable employees, see section 4980G.’’.
(2) EXCLUSION FROM EMPLOYMENT TAXES.— (A) RAILROAD RETIREMENT TAX.—Subsection (e) of section 3231 of such Code is amended by adding at the end the following new paragraph: ‘‘(11) HEALTH SAVINGS ACCOUNT CONTRIBUTIONS.—The term ‘compensation’ shall not include any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d).’’. (B) UNEMPLOYMENT TAX.—Subsection (b) of section 3306 of such Code is amended by striking ‘‘or’’ at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting ‘‘; or’’, and by inserting after paragraph (17) the following new paragraph: ‘‘(18) any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d).’’. (C) WITHHOLDING TAX.—Subsection (a) of section 3401 of such Code is amended by striking ‘‘or’’ at the end of paragraph (20), by striking the period at the end of paragraph (21) and inserting ‘‘; or’’, and by inserting after paragraph (21) the following new paragraph: ‘‘(22) any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d).’’. (3) EMPLOYER CONTRIBUTIONS REQUIRED TO BE SHOWN ON W–2.—Subsection (a) of section 6051 of such Code is amended by striking ‘‘and’’ at the end of paragraph (10), by striking the period at the end of paragraph (11) and inserting ‘‘, and’’, and by inserting after paragraph (11) the following new paragraph:
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26 USC 3231.
26 USC 3306.
26 USC 3401.
26 USC 6051.
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