For purposes of computing the limitation under paragraph (1) for any taxable year, an individual who is an eligible individual during the last month of such taxable year shall be treated as having been an eligible individual during each of the months in such taxable year. (B) Failure to maintain eligibility (i) In general If, at any time during the testing period, the individual is not an eligible individual, then— (I) gross income of the individual for the taxable year in which occurs the first month in the testing period for which such individual is not an eligible individual is increased by the aggregate amount of all contributions to the small business health account of the individual which could not have been made but for subparagraph (A), and (II) the tax imposed by this chapter for any taxable year on the individual shall be increased by 10 percent of the amount of such increase. (ii) Exception for disability or death Subclauses (I) and (II) of clause (i) shall not apply if the individual ceased to be an eligible individual by reason of the death of the individual or the individual becoming disabled (within the meaning of section 72(m)(7)). (iii) Testing period The term testing period means the period beginning with the last month of the taxable year referred to in subparagraph (A) and ending on the last day of the twelfth month following such month. (c) Definitions and special rules For purposes of this section— (1) Archer MSA The term Archer MSA has the meaning given such term in section 220(d). (2) Eligible individual The term eligible individual means, with respect to any month, any individual if— (A) such individual is employed by a small business, and (B) except as provided under subsection (f)(5)(B), no cash has been paid during such month by or on behalf of such individual to a health savings account under section 223. (3) Small business The term small business means a small business concern (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )). (d) Small business health account