Who is eligible for the New Mexico Medical Care Savings Account Exemption?
If you or your spouse are enrolled in a New Mexico Medical Care Savings Account (NMMSA) established by an employer, and during 2008 you have made or received contributions to the account or have made or received distributions from the account, you may be entitled to claim a New Mexico medical care savings account exemption. A NMMSA is a tax-exempt trust or custodial account set up by a self-employed individual or a small employer that maintains a high deductible individual or family health plan. The funds from the NMMSA are used to pay the employee’s unreimbursed medical care expenses. To qualify for the exemption, the qualified contributions or distributions may not be excluded, exempted, or deducted from federal taxable income. Principal contributed to an NMMSA, interest earned on an NMMSA, money paid for eligible medical expenses from funds in an NMMSA, or money advanced to the employee by the employer for eligible medical expenses pursuant to the Medical Care Savings Account Act ar
