Montana Code 15-61-203. Withdrawal of funds from account for purposes other than eligible medical expenses
15-61-203. (Temporary) Withdrawal of funds from account for purposes other than eligible medical expenses. (1) An employee or account holder may withdraw money from the individual’s medical care savings account for any purpose other than an eligible medical expense or for paying the expenses of administering the account only on the last business day of the account administrator‘s business year. Money withdrawn from an account pursuant to this subsection must be taxed as ordinary income of the employee or account holder.
Terms Used In Montana Code 15-61-203
- account: means an account established with an account administrator in this state pursuant to 15-61-201. See Montana Code 15-61-102
- Account administrator: means :
(a)a state or federally chartered bank, savings and loan association, credit union, or trust company;
(b)a health care insurer as defined in 33-22-125;
(c)a certified public accountant licensed to practice in this state pursuant to Title 37, chapter 50;
(d)an employer if the employer has a self-insured health plan under ERISA;
(e)the account holder or an employee for whose benefit the account in question is established;
(f)a broker, insurance producer, or investment adviser regulated by the commissioner of insurance;
(g)an attorney licensed to practice law in this state;
(h)a person who is an enrolled agent allowed to practice before the United States internal revenue service. See Montana Code 15-61-102
- Account holder: means an individual who is a resident of this state and who establishes a medical care savings account or for whose benefit the account is established. See Montana Code 15-61-102
- Eligible medical expense: means :
(a)an expense paid by the employee or account holder for medical care defined by 26 U. See Montana Code 15-61-102
- Employee: means an employed individual for whose benefit or for the benefit of whose dependents a medical care savings account is established. See Montana Code 15-61-102
(2)There is a penalty equal to 10% of the amount of a withdrawal for a withdrawal other than for eligible medical expenses or for expenses of administering the account or other than on the last business day of the account administrator’s business year. The administrator may withhold the penalty from the amount of the withdrawal and, on behalf of the employee or account holder, pay the penalty to the department of revenue. Payments made to the department pursuant to this section must be deposited in the general fund. Money withdrawn from an account pursuant to this subsection must be taxed as ordinary income of the employee or account holder.
(3)For the purposes of this section, “last business day of the account administrator’s business year”, as applied to an account administrator who is also the account holder or an employee, means the last weekday in December.