1. Short title This Act may be cited as the Small Business Health Account Act of 2018 . 2. Small Business Health Accounts (a) In general Part VIII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating section 224 as section 225 and inserting after section 223 the following new section: 224. Small Business Health Accounts (a) Deduction allowed In the case of an individual who is an eligible individual for any month during the taxable year, there shall be allowed as a deduction for the taxable year an amount equal to the aggregate amount paid in cash during such taxable year by or on behalf of such individual to a small business health account of such individual. (b) Limitations (1) In general The amount allowable as a deduction under subsection (a) to an individual for the taxable year shall not exceed the sum of the monthly limitations for months during such taxable year that the individual is an eligible individual. (2) Monthly limitation The monthly limitation for any month is 1/12 of— (A) in the case of an eligible individual who is not described in subparagraph (B), $3,400, or (B) in the case of an eligible individual who is a head of a household or married (within the meaning of section 7703) and filing a joint return under section 6013 for the taxable year, $6,750. (3) Additional contributions for individuals 55 or older In the case of an individual who has attained age 55 before the close of the taxable year, the applicable limitation under subparagraphs (A) and (B) of paragraph (2) shall be increased by $1,000. (4) Coordination with other contributions (A) In general The limitation which would (but for this paragraph) apply under this subsection to an individual for any taxable year shall be reduced (but not below zero) by the sum of— (i) the aggregate amount paid for such taxable year to Archer MSAs of such individual, (ii) the aggregate amount contributed to small business health accounts of such individual which is excludable from the taxpayer's gross income for