Sec. 2. Distributions from health savings accounts during periods of qualified caregiving

232 words·~1 min read·/bill/117/hr/53/ih/section-2

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Paragraphs

(1)and

(2)of section 223(f) of the Internal Revenue Code of 1986 are amended to read as follows: Any amount paid or distributed out of a health savings account shall not be includible in gross income if it is— used exclusively to pay qualified medical expenses of any account beneficiary, or paid or distributed during a period of qualified caregiving. Any amount paid or distributed out of a health savings account shall be included in the gross income of the account beneficiary if it is not described in paragraph (1). . Section 223(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: For purposes of this section, the term period of qualified caregiving means any period during which an individual is on leave or not employed by reason of a situation described in subparagraphs

(A)through

(E)of section 102(a)(1) of the Family and Medical Leave Act of 1993. . Section 223(d)(1) of such Code is amended by inserting or the expenses incurred during a period of qualified caregiving of the account beneficiary . Section 223(f)(4) of such Code is amended in the heading by striking and inserting distributions not used for qualified medical expenses . certain distributions The amendments made by this section shall apply with respect to taxable years beginning after the date of the enactment of this Act.