[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5858 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 5858
To amend the Internal Revenue Code of 1986 to improve health savings
accounts, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
May 29, 2012
Mr. Herger introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to improve health savings
accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
Sec. 2. Saver's credit for contributions to health savings accounts.
Sec. 3. Special rule for certain medical expenses incurred before
establishment of account.
Sec. 4. Allow both spouses to make catch-up contributions to the same
health savings account.
Sec. 5. Individuals eligible for veterans benefits for a service-
connected disability.
Sec. 6. Distributions by certain early retirees for health coverage
treated as qualified medical expense.
SEC. 2. SAVER'S CREDIT FOR CONTRIBUTIONS TO HEALTH SAVINGS ACCOUNTS.
(a) Allowance of Credit.--Subsection (a) of section 25B of the
Internal Revenue Code of 1986 is amended by inserting ``aggregate
qualified HSA contributions and'' after ``so much of the''.
(b) Qualified HSA Contributions.--Subsection (d) of section 25B of
such Code is amended by redesignating paragraph (2) as paragraph (3)
and by inserting after paragraph (1) the following new paragraph:
``(2) Qualified hsa contributions.--The term `qualified HSA
contribution' means, with respect to any taxable year, any
contribution to a health savings account (as defined in section
223(d)(1)) if--
``(A) such contribution is allowable as a deduction
to the taxpayer under section 223(a) for such taxable
year, or
``(B) such contribution is made by an employer of
the taxpayer at the election of the taxpayer under a
cafeteria plan (as defined in section 125(d)) and is
not includible in the gross income of the taxpayer by
reason of section 125.''.
(c) Reporting of HSA Elective Contributions.--Paragraph (12) of
section 6051(a) of such Code is amended to read as follows:
``(12) the total amount contributed to health savings
accounts (as defined in section 223(d)) of the employee or the
employee's spouse and the portion of such total amount
contributed at the election of the employee under any cafeteria
plan (as defined in section 125(d)),''.
(d) Conforming Amendments.--Section 25B(d)(3) of such Code, as
redesignated by subsection (b), is amended--
(1) by striking the first sentence of subparagraph (A) and
inserting the following: ``The aggregate qualified retirement
savings contributions determined under paragraph (1) and
qualified HSA contributions determined under paragraph (2)
shall be reduced (but not below zero) by the aggregate
distributions received by the individual during the testing
period from any entity of a type to which contributions under
paragraph (1) or paragraph (2) (as the case may be) may be
made.'', and
(2) by inserting ``223(f)(1) or (3),'' after ``section
72(p)'' in subparagraph (C)(i).
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 3. SPECIAL RULE FOR CERTAIN MEDICAL EXPENSES INCURRED BEFORE
ESTABLISHMENT OF ACCOUNT.
(a) In General.--Paragraph (2) of section 223(d) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(D) Treatment of certain medical expenses
incurred before establishment of account.--If a health
savings account is established during the 60-day period
beginning on the date that coverage of the account
beneficiary under a high deductible health plan begins,
then, solely for purposes of determining whether an
amount paid is used for a qualified medical expense,
such account shall be treated as having been
established on the date that such coverage begins.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to coverage beginning after the date of the enactment of
this Act.
SEC. 4. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CONTRIBUTIONS TO THE SAME
HEALTH SAVINGS ACCOUNT.
(a) In General.--Paragraph (5) of section 223(b) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(5) Special rule for married individuals with family
coverage.--
``(A) In general.--In the case of individuals who
are married to each other, if both spouses are eligible
individuals and either spouse has family coverage under
a high deductible health plan as of the first day of
any month--
``(i) the limitation under paragraph (1)
shall be applied by not taking into account any
other high deductible health plan coverage of
either spouse (and if such spouses both have
family coverage under separate high deductible
health plans, only one such coverage shall be
taken into account),
``(ii) such limitation (after application
of clause (i)) shall be reduced by the
aggregate amount paid to Archer MSAs of such
spouses for the taxable year, and
``(iii) such limitation (after application
of clauses (i) and (ii)) shall be divided
equally between such spouses unless they agree
on a different division.
``(B) Treatment of additional contribution
amounts.--If both spouses referred to in subparagraph
(A) have attained age 55 before the close of the
taxable year, the limitation referred to in
subparagraph (A)(iii) which is subject to division
between the spouses shall include the additional
contribution amounts determined under paragraph (3) for
both spouses. In any other case, any additional
contribution amount determined under paragraph (3)
shall not be taken into account under subparagraph
(A)(iii) and shall not be subject to division between
the spouses.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2012.
SEC. 5. INDIVIDUALS ELIGIBLE FOR VETERANS BENEFITS FOR A SERVICE-
CONNECTED DISABILITY.
(a) In General.--Paragraph (1) of section 223(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(C) Special rule for individuals eligible for
certain veterans benefits.--An individual shall not
fail to be treated as an eligible individual for any
period merely because the individual receives hospital
care or medical services under any law administered by
the Secretary of Veterans Affairs for a service-
connected disability (within the meaning of section
101(16) of title 38, United States Code).''.
(b) Effective Date.--The amendment made by this section shall apply
to months beginning after December 31, 2012.
SEC. 6. DISTRIBUTIONS BY CERTAIN EARLY RETIREES FOR HEALTH COVERAGE
TREATED AS QUALIFIED MEDICAL EXPENSE.
(a) In General.--Subparagraph (C) of section 223(d)(2) of the
Internal Revenue Code of 1986 is amended by striking ``or'' at the end
of clause (iii), by striking the period at the end of clause (iv) and
inserting ``, or'', and by adding at the end the following new clause:
``(v) in the case of an account beneficiary
who has attained age 55 but not the age
specified in section 1811 of the Social
Security Act, any group health plan (as defined
in section 5000(b)(1)) in which such account
beneficiary is enrolled by reason of being a
former employee or a surviving spouse of a
former employee.''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid for coverage for periods after December 31, 2012.
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