§ 106. Contributions by employer to accident and health plans

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 32 · 68A Stat. 32

   Enacted · 26 U.S.C. § 106

   Aug. 16, 1954, ch. 736, 68A Stat. 32

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 32

2. 1986

   Consolidated Omnibus Budget Reconciliation Act of 1985

   Pub. L. 99–272 title X § 10001(b) · 100 Stat. 82

   1. Amended · 26 U.S.C. § 106

      Pub. L. 99–272 designated existing provisions as subsec. (a)

   2. Added · 26 U.S.C. § 106

      Pub. L. 99–272 added subsec. (a) heading and subsec. (b)

   Source evidence

   Code amendment note
   Pub. L. 99–272 designated existing provisions as subsec. (a) and added subsec. (a) heading and subsec. (b).

   Enacted provision · exact public law section
   (b) Denial of Exclusion for Highly Compensated Individuals.— Section 106 of the Internal Revenue Code of 1954 (relating to contributions by employer to accident and health plans) is amended by inserting “(a) In General.—” before “Gross” and by inserting at the end thereof the following new subsection: “(b) Exception for Highly Compensated Individuals Where Plan Fails To Provide Certain Continuation Coverage.— “(1) In general.— Subsection (a) shall not apply to any amount contributed by an employer on behalf of a highly compensated individual (within the meaning of section 105(h)(5)) to a group health plan maintained by such employer unless all such plans maintained by such employer meet the continuing coverage requirements of section 162(k). “(2) Exception for certain plans.— Paragraph (1) shall not apply to any— “(A) group health plan for any calendar year if all employers maintaining such plan normally employed fewer than 20 employees on a typical business day during the preceding calendar year, “(B) governmental plan (within the meaning of section 414(d)), or “(C) church plan (within the meaning of section 414(e)). Under regulations, rules similar to the rules of subsections (a) and (b) of section 52 (relating to employers under common control) shall apply for purposes of subparagraph (A). “(3) Group health plan.— For purposes of this subsection, the term ‘group health plan’ has the meaning given such term by section 162(i)(3).”.

3. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1151(j)(2) · 100 Stat. 2085

   Amended · 26 U.S.C. § 106(a)

   Pub. L. 99–514, § 1151(j)(2), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Gross income does not include contributions by the employer to accident or health plans for compensation (through insurance or otherwise) to his employees for personal injuries or sickness.”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 99–514, § 1151(j)(2), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Gross income does not include contributions by the employer to accident or health plans for compensation (through insurance or otherwise) to his employees for personal injuries or sickness.”

   Enacted provision · exact public law section
   (2) Subsection (a) of section 106 (relating to contributions by employer to accident and health plans) is amended to read as follows: “(a) In General.— Gross income of an employee does not include employer-provided coverage under an accident or health plan.”

4. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 1114(b)(1) · 100 Stat. 2085

   Substituted · 26 U.S.C. § 106(b)(1)

   Pub. L. 99–514, § 1114(b)(1), substituted “highly compensated employee (within the meaning of section 414(q))” for “highly compensated individual (within the meaning of section 105(h)(5))”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 99–514, § 1114(b)(1), substituted “highly compensated employee (within the meaning of section 414(q))” for “highly compensated individual (within the meaning of section 105(h)(5))”.

   Enacted provision · exact public law section
   (1) Section 106(b)(1) is amended by striking out “highly compensated individual (within the meaning of section 105(h)(5))” and inserting in lieu thereof “highly compensated employee (within the meaning of section 414(q))”.

5. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 3011(b)(1) · 102 Stat. 3342

   1. Amended · 26 U.S.C. § 106

      Pub. L. 100–647, § 3011(b)(1), amended section generally

   2. Substituted · 26 U.S.C. § 106

      Pub. L. 100–647, § 3011(b)(1), substituting a single undesignated par. for former subsec. (a) providing that gross income does not include employer-provided coverage under an accident or health plan and subsec. (b) providing for an exception for highly compensated individuals where a plan fails to provide certain continuation coverage

   Source evidence

   Code amendment note
   Pub. L. 100–647, § 3011(b)(1), amended section generally, substituting a single undesignated par. for former subsec. (a) providing that gross income does not include employer-provided coverage under an accident or health plan and subsec. (b) providing for an exception for highly compensated individuals where a plan fails to provide certain continuation coverage.

   Enacted provision · exact public law section
   (1) Section 106 of the 1986 Code (relating to contributions by employer to accident and health plans) is amended to read as follows: “SEC. 106. CONTRIBUTIONS BY EMPLOYER TO ACCIDENT AND HEALTH PLANS. “Gross income of an employee does not include employer-provided coverage under an accident or health plan.”

6. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1018(t)(7)(A) · 102 Stat. 3342

   1. Substituted · 26 U.S.C. § 106(b)(1)

      Pub. L. 100–647, § 1018(t)(7)(A), substituted “any employer-provided coverage” for “any amount contributed by an employer”

   2. Substituted · 26 U.S.C. § 106(b)(1)

      Pub. L. 100–647, § 1018(t)(7)(A), substituted “under a group” for “to a group”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 100–647, § 1018(t)(7)(A), substituted “any employer-provided coverage” for “any amount contributed by an employer” and “under a group” for “to a group”.

   Enacted provision · exact public law section
   (A) Section 106(b)(1) of the 1986 Code (relating to exception for highly compensated individuals where plan fails to provide certain continuation coverage) is amended— (i) by striking out “any amount contributed by an employer” and inserting in lieu thereof “any employer-provided coverage”, and (ii) by striking out “to a group” and inserting in lieu thereof “under a group”.

7. 1989

   Revenue Reconciliation Act of 1989

   Pub. L. 101–239 title VII § 7862(c)(1)(A) · 103 Stat. 2106

   Struck · 26 U.S.C. § 106(b)(2)

   Pub. L. 101–239 amended subsec. (b)(2) as it existed prior to general amendment by Pub. L. 100–647 by striking out the last sentence which read as follows: “Under regulations, rules similar to the rules of subsections (a) and (b) of section 52 (relating to employers under common control) shall apply for purposes of subparagraph (A).” See Effective Date of 1989 Amendment note below

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 101–239 amended subsec. (b)(2) as it existed prior to general amendment by Pub. L. 100–647 by striking out the last sentence which read as follows: “Under regulations, rules similar to the rules of subsections (a) and (b) of section 52 (relating to employers under common control) shall apply for purposes of subparagraph (A).” See Effective Date of 1989 Amendment note below.

   Enacted provision · exact public law section
   (A) Section 106(b)(2) (relating to exception to certain plans) is amended by striking the last sentence thereof.

8. 1996

   Pub. L. 104–191 § 301(c)(1) · 110 Stat. 1936

   Amended · 26 U.S.C. § 106

   Pub. L. 104–191, § 301(c)(1), amended text generally. Prior to amendment, text read as follows: “Gross income of an employee does not include employer-provided coverage under an accident or health plan.”

   Source evidence

   Code amendment note
   Pub. L. 104–191, § 301(c)(1), amended text generally. Prior to amendment, text read as follows: “Gross income of an employee does not include employer-provided coverage under an accident or health plan.”

   Enacted provision · exact public law section
   (1) Exclusion from income tax.— The text of section 106 (relating to contributions by employer to accident and health plans) is amended to read as follows: “(a) General rule.— Except as otherwise provided in this section, gross income of an employee does not include employer-provided coverage under an accident or health plan. “(b) Contributions to Medical Savings Accounts.— “(1) In general.— In the case of an employee who is an eligible individual, amounts contributed by such employee’s employer to any medical savings account of such employee shall be treated as employer-provided coverage for medical expenses under an accident or health plan to the extent such amounts do not exceed the limitation under section 220(b)(1) (determined without regard to this subsection) which is applicable to such employee for such taxable year. “(2) No constructive receipt.— No amount shall be included in the gross income of any employee solely because the employee may choose between the contributions referred to in paragraph (1) and employer contributions to another health plan of the employer. “(3) Special rule for deduction of employer contributions.— Any employer contribution to a medical savings account, if otherwise allowable as a deduction under this chapter, shall be allowed only for the taxable year in which paid. “(4) Employer msa contributions required to be shown on return.— Every individual required to file a return under section 6012 for the taxable year shall include on such return the aggregate amount contributed by employers to the medical savings accounts of such individual or such individual’s spouse for such taxable year. “(5) MSA contributions not part of cobra coverage.— Paragraph (1) shall not apply for purposes of section 4980B. “(6) Definitions.— For purposes of this subsection, the terms ‘elligible individual’ and ‘medical savings account’ have the respective meanings given to such terms by section 220. “(7) Cross reference.— “For penalty on failure by employer to make comparable contributions to the medical savings accounts of comparable employees, see section 4980E.”. (2) Exclusion from employment taxes.— (A) Railroad retirement tax.— Subsection (e) of section 3231 is amended by adding at the end the following new paragraph: “(10) Medical savings account contributions.— The term ‘compensation’ shall not include 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(b).”. (B) Unemployment tax.— Subsection (b) of section 3306 is amended by striking “or” at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting “; or”, and by inserting after paragraph (16) the following new paragraph: “(17) 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(b).”. (C) Withholding tax.— Subsection (a) of section 3401 is amended by striking “or” at the end of paragraph (19), by striking the period at the end of paragraph (20) and inserting “; or”, and by inserting after paragraph (20) the following new paragraph: “(21) 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(b).” (3) employer contributions required to be shown on w-2.—Subsection (a) of section 6051 is amended by striking “and” at the end of paragraph (9), by striking the period at the end of paragraph (10) and inserting “,and”, and by inserting after paragraph (10) the following new paragraph: “(11) the amount contributed to any medical savings account (as defined in section 220(d)) of such employee or such employee’s spouse.”. (4) Penalty for failure of employer to make comparable msa contributions.— (A) In general.— Chapter 43 is amended by adding after section 4980D the following new section: “SEC. 4980E. FAILURE OF EMPLOYER TO MAKE COMPARABLE MEDICAL SAVINGS ACCOUNT CONTRIBUTIONS. “(a) General Rule.— In the case of an employer who makes a contribution to the medical savings account of any employee with respect to coverage under a high deductible 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 imposed 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 medical savings accounts of employees for taxable years of such employees ending with or within such calendar year. “(c) Waiver by Secretary.— In the case of a failure 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 involved. “(d) Employer Required To Make Comparable MSA Contributions for All Participating Employees.— “(1) In general.— An employer meets the requirements of this subsection for any calendar year if the employer makes available comparable contributions to the medical savings accounts of all comparable participating employees for each coverage period during such calendar year. “(2) Comparable contributions.— “(A) In general.— For purposes of paragraph (1), the term ‘comparable contributions’ means contributions— “(i) which are the same amount, or “(ii) which are the same percentage of the annual deductible limit under the high deductible health plan covering the employees. “(B) Part-year employees.— In the case of an employee who is employed by the employer for only a portion of the calendar year, a contribution to the medical savings account of such employee shall be treated as comparable if it is an amount which bears the same ratio to the comparable amount (determined without regard to this subparagraph) as such portion bears to the entire calendar year. “(3) Comparable participating employees.— For purposes of paragraph (1), the term ‘comparable participating employees’ means all employees— “(A) who are eligible individuals covered under any high deductible health plan of the employer, and “(B) who have the same category of coverage. For purposes of subparagraph (B), the categories of coverage are self-only and family coverage. “(4) Part-time employees.— “(A) In general.— Paragraph (3) shall be applied separately with respect to part-time employees and other employees. “(B) Part-time employee.— For purposes of subparagraph (A), the term ‘part-time employee’ means any employee who is customarily employed for fewer than 30 hours per week. “(e) Controlled Groups.— For purposes of this section, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer. “(f) Definitions.— Terms used in this section which are also used in section 220 have the respective meanings given such terms in section 220.”. (B) Clerical amendment.— The table of sections for chapter 43 is amended by adding after the item relating to section 4980D the following new item: “Sec. 4980E. Failure of employer to make comparable medical savings account contributions.”.

9. 1996

   Pub. L. 104–191 § 321(c)(2) · 110 Stat. 1936

   Added · 26 U.S.C. § 106(c)

   Pub. L. 104–191, § 321(c)(2), added subsec. (c)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 104–191, § 321(c)(2), added subsec. (c).

   Enacted provision · exact public law section
   (2) Flexible spending arrangements.— Section 106 (relating to contributions by employer to accident and health plans), as amended by section 301(c), is amended by adding at the end the following new subsection: “(c) Inclusion of Long-Term Care Benefits Provided Through Flexible Spending Arrangements.— “(1) In general.— Effective on and after January 1, 1997, gross income of an employee shall include employer-provided coverage for qualified long-term care services (as defined in section 7702B(c)) to the extent that such coverage is provided through a flexible spending or similar arrangement. “(2) Flexible spending arrangement.— For purposes of this subsection, a flexible spending arrangement is a benefit program which provides employees with coverage under which— “(A) specified incurred expenses may be reimbursed (subject to reimbursement maximums and other reasonable conditions), and “(B) the maximum amount of reimbursement which is reasonably available to a participant for such coverage is less than 500 percent of the value of such coverage. In the case of an insured plan, the maximum amount reasonably available shall be determined on the basis of the underlying coverage.”

10. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(a)(2) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)

    Pub. L. 106–554 § 1(a)(7) [title II, § 202(b)(6)], substituted “Archer MSAs” for “medical savings accounts” in heading

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 106–554 § 1(a)(7) [title II, § 202(b)(6)], substituted “Archer MSAs” for “medical savings accounts” in heading.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

11. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(a)(2) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)(1)

    Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

12. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(a)(2) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)(3)

    Pub. L. 106–554 § 1(a)(7) [title II, § 202(b)(10)], substituted “an Archer MSA” for “a Archer MSA”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 106–554 § 1(a)(7) [title II, § 202(b)(10)], substituted “an Archer MSA” for “a Archer MSA”.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

13. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(a)(2) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)(3)

    Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

14. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(b)(2)(A) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)(4)

    Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(A)], substituted “Archer MSAs” for “medical savings accounts”

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(A)], substituted “Archer MSAs” for “medical savings accounts”.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

15. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(a)(2) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)(6)

    Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”

    Source evidence

    Code amendment note
    Subsec. (b)(6). Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

16. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tII)(s202)(b)(2)(A) · 114 Stat. 2763

    Substituted · 26 U.S.C. § 106(b)(7)

    Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(A)], substituted “Archer MSAs” for “medical savings accounts”

    Source evidence

    Code amendment note
    Subsec. (b)(7). Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(A)], substituted “Archer MSAs” for “medical savings accounts”.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

17. 2003

    Medicare Prescription Drug, Improvement, and Modernization Act of 2003

    Pub. L. 108–173 title XII § 1201(d)(1) · 117 Stat. 2066

    Added · 26 U.S.C. § 106(d)

    Pub. L. 108–173 added subsec. (d)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 108–173 added subsec. (d).

    Enacted provision · exact public law section
    (1) Exclusion from income tax.— Section 106 of such Code (relating 26 USC 106. to contributions by employer to accident and health plans) is amended by adding at the end the following new subsection: “(d) Contributions to Health Savings Accounts.— “(1) In general.— In the case of an employee who is an eligible individual (as defined in section 223(c)(1)), amounts contributed by such employee’s employer to any health savings account (as defined in section 223(d)) of such employee shall be treated as employer-provided coverage for medical expenses under an accident or health plan to the extent such amounts do not exceed the limitation under section 223(b) (determined without regard to this subsection) which is applicable to such employee for such taxable year. “(2) Special rules.— Rules similar to the rules of paragraphs (2), (3), (4), and (5) of subsection (b) shall apply for purposes of this subsection. “(3) Cross reference.—  “For penalty on failure by employer to make comparable contributions to the health savings accounts of comparable employees, see section 4980G.” .

18. 2006

    Health Opportunity Patient Empowerment Act of 2006

    Pub. L. 109–432 div. A title III § 302(a) · 120 Stat. 2922

    Added · 26 U.S.C. § 106(e)

    Pub. L. 109–432 added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 109–432 added subsec. (e).

    Enacted provision · exact public law section
    (a) In General.— Section 106 26 USC 106. (relating to contributions by employer to accident and health plans) is amended by adding at the end the following new subsection: “(e) FSA and HRA Terminations to Fund HSAs.— “(1) In general.— A plan shall not fail to be treated as a health flexible spending arrangement or health reimbursement arrangement under this section or section 105 merely because such plan provides for a qualified HSA distribution. “(2) Qualified hsa distribution.— The term ‘qualified HSA distribution’ means a distribution from a health flexible spending arrangement or health reimbursement arrangement to the extent that such distribution— “(A) does not exceed the lesser of the balance in such arrangement on September 21, 2006, or as of the date of such distribution, and “(B) is contributed by the employer directly to the health savings account of the employee before January 1, 2012. Such term shall not include more than 1 distribution with respect to any arrangement. “(3) Additional tax for failure to maintain high deductible health plan coverage.— “(A) In general.— If, at any time during the testing period, the employee is not an eligible individual, then the amount of the qualified HSA distribution— “(i) shall be includible in the gross income of the employee for the taxable year in which occurs the first month in the testing period for which such employee is not an eligible individual, and “(ii) the tax imposed by this chapter for such taxable year on the employee shall be increased by 10 percent of the amount which is so includible. “(B) Exception for disability or death.— Clauses (i) and (ii) of subparagraph (A) shall not apply if the employee ceases to be an eligible individual by reason of the death of the employee or the employee becoming disabled (within the meaning of section 72(m)(7)). “(4) Definitions and special rules.— For purposes of this subsection— “(A) Testing period.— The term ‘testing period’ means the period beginning with the month in which the qualified HSA distribution is contributed to the health savings account and ending on the last day of the 12th month following such month. “(B) Eligible individual.— The term ‘eligible individual’ has the meaning given such term by section 223(c)(1). “(C) Treatment as rollover contribution.— A qualified HSA distribution shall be treated as a rollover contribution described in section 223(f)(5). “(5) Tax treatment relating to distributions.— For purposes of this title— “(A) In general.— A qualified HSA distribution shall be treated as a payment described in subsection (d). “(B) Comparability excise tax.— “(i) In general.— Except as provided in clause (ii), section 4980G shall not apply to qualified HSA distributions. “(ii) Failure to offer to all employees.— In the case of a qualified HSA distribution to any employee, the failure to offer such distribution to any eligible individual covered under a high deductible health plan of the employer shall (notwithstanding section 4980G(d)) be treated for purposes of section 4980G as a failure to meet the requirements of section 4980G(b).” .

19. 2010

    Patient Protection and Affordable Care Act

    Pub. L. 111–148 title IX § 9003(c) · 124 Stat. 119

    Added · 26 U.S.C. § 106(f)

    Pub. L. 111–148 added subsec. (f)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 111–148 added subsec. (f).

    Enacted provision · exact public law section
    (c) Health Flexible Spending Arrangements and Health Reimbursement Arrangements.— Section 106 of the Internal Revenue Code of 1986 26 USC 106. is amended by adding at the end the following new subsection: “(f) Reimbursements for Medicine Restricted to Prescribed Drugs and Insulin.— For purposes of this section and section 105, reimbursement for expenses incurred for a medicine or a drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.” .

20. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 div. A title II § 221(a)(17) · 128 Stat. 4010

    Substituted · 26 U.S.C. § 106(c)(1)

    Pub. L. 113–295 substituted “Gross income” for “Effective on and after January 1, 1997, gross income”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 113–295 substituted “Gross income” for “Effective on and after January 1, 1997, gross income”.

    Enacted provision · exact public law section
    (17) Flexible spending arrangements.— Section 106(c)(1) is amended by striking “Effective on and after January 1, 1997, gross” and inserting “Gross”.

21. 2016

    Increasing Choice, Access, and Quality in Health Care for Americans Act

    Pub. L. 114–255 div. C title XVIII § 18001(a)(2) · 130 Stat. 1033

    Added · 26 U.S.C. § 106(g)

    Pub. L. 114–255 added subsec. (g)

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 114–255 added subsec. (g).

    Enacted provision · exact public law section
    (2) Limitation on exclusion from gross income.— Section 106 of such Code is amended by adding at the end the following: “(g) Qualified Small Employer Health Reimbursement Arrangement.— For purposes of this section and section 105, payments or reimbursements from a qualified small employer health reimbursement arrangement (as defined in section 9831(d)) of an individual for medical care (as defined in section 213(d)) shall not be treated as paid or reimbursed under employer-provided coverage for medical expenses under an accident or health plan if for the month in which such medical care is provided the individual does not have minimum essential coverage (within the meaning of section 5000A(f)).” .

22. 2020

    Coronavirus Aid, Relief, and Economic Security Act

    Pub. L. 116–136 div. A title III § 3702(c) · 134 Stat. 281

    1. Added · 26 U.S.C. § 106(f)

       Pub. L. 116–136 added subsec. (f)

    2. Struck · 26 U.S.C. § 106(f)

       Pub. L. 116–136 struck out former subsec. (f). Prior to amendment, text read as follows: “For purposes of this section and section 105, reimbursement for expenses incurred for a medicine or a drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.”

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 116–136 added subsec. (f) and struck out former subsec. (f). Prior to amendment, text read as follows: “For purposes of this section and section 105, reimbursement for expenses incurred for a medicine or a drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.”

    Enacted provision · exact public law section
    (c) Health Flexible Spending Arrangements and Health Reimbursement Arrangements.— Section 106 of such Code is amended by striking subsection (f) and inserting the following new subsection: “(f) Reimbursements for Menstrual Care Products.— For purposes of this section and section 105, expenses incurred for menstrual care products (as defined in section 223(d)(2)(D)) shall be treated as incurred for medical care.” .

    Effective date note
    Pub. L. 116–136, div. A, title III, § 3702(d)(2), Mar. 27, 2020, 134 Stat. 416, provided that: “The amendment made by subsection (c) [amending this section] shall apply to expenses incurred after December 31, 2019.”

25 of 26 references resolved to an enrolled provision · 1 partial