(c) 
ROLLOVERS
FROM
ARCHER
MSAS
PER-
MITTED.—Subparagraph (A) of section 220(f)(5) of such 
Code (relating to rollover contribution) is amended by in-
serting ‘‘or a health savings account (as defined in section 
223(d))’’ after ‘‘paid into an Archer MSA’’. 
(d) EXCLUSIONS FOR EMPLOYER CONTRIBUTIONS TO 
MEDICAL SAVINGS ACCOUNTS.—
(1) EXCLUSION
FROM
INCOME
TAX.—Section 
106 of such Code (relating to contributions by em-
ployer to accident and health plans) is amended by 
adding at the end the following new subsection: 
‘‘(d) CONTRIBUTIONS
TO HEALTH SAVINGS AC-
COUNTS.— 
‘‘(1) IN GENERAL.—In the case of an employee 
who is an eligible individual, amounts contributed by 
such employee’s employer to any health savings ac-
count of such employee shall be treated as employer-
provided coverage for medical expenses under an ac-
cident or health plan to the extent such amounts do 
not exceed the excess of—
‘‘(A) the limitation under section 223(b)(1) 
(determined without regard to this subsection) 
which is applicable to such employee for such 
taxable year, over
‘‘(B) the aggregate amount treated as em-
ployer-provided coverage for medical expenses 
under an accident or health plan under sub-
section (b). 
‘‘(2) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (2), (3), (4), and (5) of sub-
section (b) shall apply for purposes of this sub-
section. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section, the terms ‘eligible individual’ and ‘health 
savings account’ have the respective meanings given 
to such terms by section 223. 
‘‘(4) CROSS REFERENCE.—
‘‘For penalty on failure by employer to make com-
parable contributions to the health savings ac-
counts 
of 
comparable 
employees, 
see 
section 
4980G.’’.
(2) EXCLUSION FROM EMPLOYMENT TAXES.—
(A) RAILROAD
RETIREMENT
TAX.—Sub-
section (e) of section 3231 of such Code is 
amended by adding at the end the following 
new paragraph: 
‘‘(11) HEALTH SAVINGS ACCOUNT CONTRIBU-
TIONS.—The term ‘compensation’ shall not include 
any payment made to or for the benefit of an em-
ployee if at the time of such payment it is reason-
able to believe that the employee will be able to ex-
clude 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: 
‘‘(12) the amount contributed to any health 
savings account (as defined in section 223(d)) of 
such employee or such employee’s spouse.’’. 
(4) PENALTY FOR FAILURE OF EMPLOYER TO 
MAKE
COMPARABLE
HEALTH
SAVINGS
ACCOUNT 
CONTRIBUTIONS.—
(A) IN
GENERAL.—Chapter 43 of such 
Code is amended by adding after section 4980F 
the following new section: 
‘‘SEC. 4980G. FAILURE OF EMPLOYER TO MAKE COM-
PARABLE HEALTH SAVINGS ACCOUNT CON-
TRIBUTIONS. 
‘‘(a) GENERAL RULE.—In the case of an employer 
who makes a contribution to the health savings account 
of any employee with respect to coverage under a high de-
ductible health plan of the employer during a calendar 
year, there is hereby imposed a tax on the failure of such
employer to meet the requirements of subsection (d) for 
such calendar year. 
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) on any failure for any calendar 
year is the amount equal to 35 percent of the aggregate 
amount contributed by the employer to health savings ac-
counts of employees for taxable years of such employees 
ending with or within such calendar year. 
‘‘(c) WAIVER BY SECRETARY.—In the case of a fail-
ure which is due to reasonable cause and not to willful 
neglect, the Secretary may waive part or all of the tax 
imposed by subsection (a) to the extent that the payment 
of such tax would be excessive relative to the failure in-
volved. 
‘‘(d) EMPLOYER REQUIRED TO MAKE COMPARABLE 
HEALTH SAVINGS ACCOUNT CONTRIBUTIONS FOR ALL 
PARTICIPATING EMPLOYEES.—An employer meets the re-
quirements of this subsection for any calendar year if the 
employer meets the requirements of section 4980E(d) ap-
plied by substituting ‘health savings account’ for ‘Archer 
MSA’ each place it appears. 
‘‘(e) CONTROLLED GROUPS.—For purposes of this 
section, all persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 shall be treated 
as 1 employer.