26 U.S.C. § 138: Medicare Advantage MSA

Gross income shall not include any payment to the Medicare Advantage MSA of an individual by the Secretary of Health and Human Services under part C of title XVIII of the Social Security Act. which is designated as a Medicare Advantage MSA, a contribution made by the Secretary of Health and Human Services pursuant to part C of title XVIII of the Social Security Act, or a trustee-to-trustee transfer described in subsection (c)(4), the governing instrument of which provides that trustee-to-trustee transfers described in subsection (c)(4) may be made to and from such account, and which is established in connection with an MSA plan described in section 1859(b)(3) of the Social Security Act. qualified medical expenses shall not include amounts paid for medical care for any individual other than the account holder, and section 220(d)(2)(C) shall not apply. the amount of such payment or distribution, over the fair market value of the assets in such MSA as of the close of the calendar year preceding the calendar year in which the taxable year begins, over an amount equal to 60 percent of the deductible under the Medicare Advantage MSA plan covering the account holder as of January 1 of the calendar year in which the taxable year begins. becomes disabled within the meaning of section 72(m)(7), or dies. all Medicare Advantage MSAs of the account holder shall be treated as 1 account, all payments and distributions not used exclusively to pay the qualified medical expenses of the account holder during any taxable year shall be treated as 1 distribution, and any distribution of property shall be taken into account at its fair market value on the date of the distribution. Section 220(f)(2) and paragraph (2) of this subsection shall not apply to any payment or distribution from a Medicare Advantage MSA to the Secretary of Health and Human Services of an erroneous contribution to such MSA and of the net income attributable to such contribution. Section 220(f)(2) and paragraph (2) of this subsection shall not apply to any trustee-to-trustee transfer from a Medicare Advantage MSA of an account holder to another Medicare Advantage MSA of such account holder. In applying section 220(f)(8)(A) to an account which was a Medicare Advantage MSA of a decedent, the rules of section 220(f) shall apply in lieu of the rules of subsection (c) of this section with respect to the spouse as the account holder of such Medicare Advantage MSA. shall include the fair market value of the assets in such Medicare Advantage MSA as of the close of each calendar year, and not later than January 31 of the calendar year following the calendar year to which such reports relate, and in such manner as the Secretary prescribes in such regulations. Subsection (i) of section 220 shall not apply to an individual with respect to a Medicare Advantage MSA, and Medicare Advantage MSAs shall not be taken into account in determining whether the numerical limitations under section 220(j) are exceeded.