I 
112TH CONGRESS 
2D SESSION 
H. R. 5858 
To amend the Internal Revenue Code of 1986 to improve health savings 
accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 29, 2012 
Mr. HERGER introduced the following bill; which was referred to the 
Committee on Ways and Means 
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 Representa-
tives 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 dis-
ability. 
Sec. 6. Distributions by certain early retirees for health coverage treated as 
qualified medical expense. 
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(c) REPORTING
OF
HSA ELECTIVE
CONTRIBU-
TIONS.—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 por-
tion 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 amend-
ed— 
(1) by striking the first sentence of subpara-
graph (A) and inserting the following: ‘‘The aggre-
gate qualified retirement savings contributions deter-
mined under paragraph (1) and qualified HSA con-
tributions determined under paragraph (2) shall be 
reduced (but not below zero) by the aggregate dis-
tributions received by the individual during the test-
ing period from any entity of a type to which con-
tributions under paragraph (1) or paragraph (2) (as 
the case may be) may be made.’’, and 
(2) by inserting ‘‘223(f)(1) or (3),’’ after ‘‘sec-
tion 72(p)’’ in subparagraph (C)(i). 
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(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 AC-
COUNT. 
(a) IN GENERAL.—Paragraph (2) of section 223(d) 
of the Internal Revenue Code of 1986 is amended by add-
ing 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 bene-
ficiary under a high deductible health plan be-
gins, 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. 
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SEC. 4. ALLOW BOTH SPOUSES TO MAKE CATCH-UP CON-
TRIBUTIONS 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 individ-
uals who are married to each other, if both 
spouses are eligible individuals and either 
spouse has family coverage under a high de-
ductible health plan as of the first day of any 
month— 
‘‘(i) the limitation under paragraph 
(1) shall be applied by not taking into ac-
count 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 ac-
count), 
‘‘(ii) such limitation (after application 
of clause (i)) shall be reduced by the ag-
gregate amount paid to Archer MSAs of 
such spouses for the taxable year, and 
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‘‘(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
CON-
TRIBUTION AMOUNTS.—If both spouses referred 
to in subparagraph (A) have attained age 55 
before the close of the taxable year, the limita-
tion referred to in subparagraph (A)(iii) which 
is subject to division between the spouses shall 
include the additional contribution amounts de-
termined 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 be-
tween 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 add-
ing at the end the following new subparagraph: 
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‘‘(C) SPECIAL RULE FOR INDIVIDUALS ELI-
GIBLE FOR CERTAIN VETERANS BENEFITS.—An 
individual shall not fail to be treated as an eli-
gible individual for any period merely because 
the individual receives hospital care or medical 
services under any law administered by the Sec-
retary of Veterans Affairs for a service-con-
nected 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 Decem-
ber 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 amend-
ed 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 bene-
ficiary who has attained age 55 but not the 
age specified in section 1811 of the Social 
Security Act, any group health plan (as de-
fined in section 5000(b)(1)) in which such 
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