Powers and duties of employer
Sec. 9. (a) Except as otherwise provided by statute, contract, or a
collective bargaining agreement, an employer may establish a
medical care savings account program for the employer's employees.
(b) An employer that establishes a medical care savings account
program under this chapter shall, before making any contributions to
medical care savings accounts under the program, inform all
employees in writing of the federal tax status of contributions made
under this chapter.
(c) Except as provided in sections 17 and 23 of this chapter, the:
(1) principal contributed by an employer to a medical care
savings account;
(2) interest earned on money on deposit in a medical care
savings account; and
(3) money:
(A) paid out of a medical care savings account for eligible
medical expenses; or
(B) used to reimburse an employee for eligible medical
expenses;
are exempt from taxation as income of the employee under
IC 6-3-2-18.
As added by P.L.92-1995, SEC.2 and P.L.93-1995, SEC.2.
Last modified: May 28, 2006