[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 572 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 572

 To amend the Internal Revenue Code of 1986 to repeal restrictions on 
               taxpayers having medical savings accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 15, 1997

  Mr. Allard introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to repeal restrictions on 
               taxpayers having medical savings accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF RESTRICTIONS ON TAXPAYERS HAVING MEDICAL SAVINGS 
              ACCOUNTS.

    (a) Repeal of Numerical Limitations and Termination.--
            (1) In general.--Section 220 of the Internal Revenue Code 
        of 1986 (relating to medical savings accounts) is amended by 
        striking subsections (i) and (j).
            (2) Conforming amendment.--Section 220(c)(1) of such Code 
        is amended by striking subparagraph (D).
    (b) Repeal of Restrictions on Individuals Who May Have Medical 
Savings Accounts.--
            (1) In general.--Section 220(c)(1)(A) of the Internal 
        Revenue Code of 1986 (defining eligible individual) is amended 
        by inserting ``and'' at the end of clause (i), by striking ``, 
        and'' at the end of clause (ii) and inserting a period, and by 
        striking clause (iii).
            (2) Conforming amendments.--
                    (A) Section 220(b) of such Code is amended by 
                striking paragraph (4) and by redesignating paragraphs 
                (5) and (6) as paragraphs (4) and (5), respectively.
                    (B) Section 220(c) of such Code is amended--
                            (i) by striking subparagraph (C) of 
                        paragraph (1), and
                            (ii) by striking paragraph (4) and by 
                        redesignating paragraph (5) as paragraph (4).
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to months beginning 
        after the date of the enactment of this Act.
            (2) Compensation limit repeal.--The amendments made by 
        subsection (b)(2)(A) shall apply to taxable years beginning 
        after December 31, 1996.
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