IB 
Union Calendar No. 365 
112TH CONGRESS 
2D SESSION 
H. R. 5858 
[Report No. 112–517] 
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 
JUNE 5, 2012 
Additional sponsor: Mrs. BLACK 
JUNE 5, 2012 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 29, 2012] 
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A BILL 
To amend the Internal Revenue Code of 1986 to improve 
health savings accounts, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Health Savings Accounts Improvements Act of 2012’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
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 sav-
ings 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 quali-
fied 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 re-
spect to any taxable year, any contribution to a 
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health savings account (as defined in section 
223(d)(1)) if— 
‘‘(A) such contribution is allowable as a de-
duction to the taxpayer under section 223(a) for 
such taxable year, or 
‘‘(B) such contribution is made by an em-
ployer of the taxpayer at the election of the tax-
payer under a cafeteria plan (as defined in sec-
tion 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 sav-
ings accounts (as defined in section 223(d)) of the em-
ployee 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 sec-
tion 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 subparagraph 
(A) and inserting the following: ‘‘The aggregate quali-
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fied retirement savings contributions determined 
under paragraph (1) and qualified HSA contribu-
tions determined under paragraph (2) shall be re-
duced (but not below zero) by the aggregate distribu-
tions received by the individual during the testing pe-
riod 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 Decem-
ber 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 adding 
at the end the following new subparagraph: 
‘‘(D) TREATMENT OF CERTAIN MEDICAL EX-
PENSES INCURRED BEFORE ESTABLISHMENT OF 
ACCOUNT.—If a health savings account is estab-
lished during the 60-day period beginning on the 
date that coverage of the account beneficiary 
under a high deductible health plan begins, then, 
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solely for purposes of determining whether an 
amount paid is used for a qualified medical ex-
pense, 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 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 deductible 
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 
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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 aggre-
gate amount paid to Archer MSAs of such 
spouses for the taxable year, and 
‘‘(iii) such limitation (after applica-
tion 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 be-
fore the close of the taxable year, the limitation 
referred to in subparagraph (A)(iii) which is 
subject to division between the spouses shall in-
clude the additional contribution amounts deter-
mined 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.’’. 
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(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 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 ELI-
GIBLE FOR CERTAIN VETERANS BENEFITS.—An 
individual shall not fail to be treated as an eligi-
ble individual for any period merely because the 
individual receives hospital care or medical serv-
ices under any law administered by the Sec-
retary 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 
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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 
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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Union Calendar No. 365 
112TH CONGRESS 
2D SESSION 
H. R. 5858 
[Report No. 112–517] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
improve health savings accounts, and for other 
purposes. 
JUNE 5, 2012 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Mar 15 2010 
21:16 Jun 05, 2012
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