This bill amends Section 63-3022K of the Idaho Code, which pertains to medical savings accounts (MSAs). The amendments include a revision of definitions and technical corrections. Notably, the annual contribution limit for MSAs is increased to ten thousand dollars ($10,000) for taxable years beginning on or after January 1, 2014. Additionally, the definition of "eligible medical expense" is expanded to include expenses paid by the account holder as a member of a health care sharing ministry, while the term "dependent child" is clarified to include those who are mentally or physically incapacitated.

The bill also introduces several changes regarding the handling of withdrawals from MSAs. It specifies that the burden of proof for eligible medical expenses lies with the account holder rather than the depository or employer. Furthermore, it outlines penalties for non-eligible withdrawals and provides conditions under which funds can be treated as not withdrawn if redeposited within certain time frames. The act is set to take effect on January 1, 2027.

Statutes affected:
Bill Text: 63-3022K