CA AB1510

Allows a deduction for contributions to health savings accounts (HSAs) for taxable years beginning on or after January 1, 2013, conforming California law to federal tax treatment under Internal Revenue Code Section 223.

Permits rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, and health reimbursement accounts to health savings accounts, effective January 1, 2013.

Modifies the federal penalty structure for HSA distributions by reducing the additional tax from 20 percent to 2.5 percent under California law.

Repeals previous sections that prohibited HSA deductions and contributions for taxable years beginning on or after January 1, 2013, replacing them with federal law conformity provisions.

Imposes a $50 penalty for failure to file required HSA reports and applies to taxable years beginning on or after January 1, 2013; takes effect immediately as a tax levy.