CA AB2041

Allows a deduction for contributions to health savings accounts (HSAs) for taxable years beginning January 1, 2010 and later, conforming California law to federal law under Internal Revenue Code Section 223.

Modifies HSA penalty provisions by substituting 2½ percent for 10 percent in Section 223(f)(4)(A) of the Internal Revenue Code for taxable years 2010 and later, with this modification no longer applying for taxable years beginning January 1, 2011 and later.

Permits rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, and health reimbursement accounts to HSAs beginning January 1, 2010.

Treats HSAs as tax-exempt trusts and requires HSA account trustees to file reports with the Franchise Tax Board under Section 223(h) of the Internal Revenue Code.

Takes effect immediately as a tax levy; sunsets various transitional provisions on January 1, 2015.