Ark. Code R. 26-51-436 - 1(7) (1997) - Medical Savings Account (msa) - Taxability of Account Distributions

Distributions from an MSA that are used to pay the *qualified medical expenses of an individual or the individual's spouse or dependents are excludable from gross income. IRC Sec. 220(f)(1).

*"qualified medical expenses" are any expenses for medical care as defined under the rules relating to the itemized deduction for medical expenses. See IRC Sec. 220(d)(2)(A).