### Question
How is the "medical savings account" defined?


### Answer
The term **medical savings account** is defined in *26 U.S.C. § 220* as follows -

> a trust created or organized in the United States exclusively for the purpose of paying the qualified medical expenses of the account holder, but only if the written governing instrument creating the trust meets the following requirements:


(A) Except in the case of a rollover contribution described in subsection (f)(5), no contribution will be accepted—


(i) unless it is in cash, or


(ii) to the extent such contribution, when added to previous contributions to the trust for the calendar year, exceeds 75 percent of the highest annual limit deductible permitted under subsection (c)(2)(A)(ii) for such calendar year

#### Citation:
  - *26 U.S.C. § 220*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VII-ADDITIONAL ITEMIZED DEDUCTIONS FOR INDIVIDUALS**

