Distributions from health savings accounts during periods of qualified caregiving

(a) In general Paragraphs (1) and (2) of section 223(f) of the Internal Revenue Code of 1986 are amended to read as follows: (1) Exclusion of amounts used for qualified medical expenses or distributed during periods of qualified caregiving Any amount paid or distributed out of a health savings account shall not be includible in gross income if it is— (A) used exclusively to pay qualified medical expenses of any account beneficiary, or (B) paid or distributed during a period of qualified caregiving. (2) Inclusion of amounts neither used for qualified medical expenses nor distributed during periods of qualified caregiving Any amount paid or distributed out of a health savings account shall be included in the gross income of the account beneficiary if it is not described in paragraph (1).. (b) Definition of period of qualified caregiving Section 223(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (9) Period of qualified caregiving For purposes of this section, the term period of qualified caregiving means any period during which an individual is on leave or not employed by reason of a situation described in subparagraphs (A) through (E) of section 102(a)(1) of the Family and Medical Leave Act of 1993.. (c) Conforming amendments (1) Section 223(d)(1) of such Code is amended by inserting or the expenses incurred during a period of qualified caregiving of the account beneficiary after paying the qualified medical expenses of the account beneficiary. (2) Section 223(f)(4) of such Code is amended in the heading by striking distributions not used for qualified medical expenses and inserting certain distributions. (d) Effective date The amendments made by this section shall apply with respect to taxable years beginning after the date of the enactment of this Act.