8.__Tax consequences. Any amount deposited into an account established under this chapter may be subtracted from taxable income of the account holder during the same tax year.__Funds withdrawn pursuant to subsection 4 must be considered income to the account holder for the purpose of computing adjusted gross income.

SUMMARY

This bill allows residents of the State to establish medical savings accounts for payment of eligible medical expenses, including the payment of health insurance premiums and deductibles. Contributions to, interest earned on and qualified withdrawals from medical savings accounts are exempt from Maine state income tax.