,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #gadi  ,,in ,,the ,,house ,,of  
,,representatives  ,june #aa1 #bjbj,mr4 
,palmer 7for himself1 ,mr4 ,cook1 ,mr4  
,hagedorn1 ,mrs4 ,wagner1 ,mr4          
,aderholt1 ,mr4 ,stivers1 ,mr4          
,balderson1 ,mr4 ,perry1 ,mr4 ,gibbs1   
and ,mr4 ,stewart7 introduced the       
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to provide special      
disposition rules for unused benefits in
 flexible spending arrangements of      
individuals for calendar year #bjbj4    
#a4 ,special disposition rules for      
unused benefits in flexible spending    
arrangements of individuals in plan year
 #bjbj  7a7 ,f,s,as must allow          
distribution or rollover in #bjbj ,for  
purposes of sections #ajf1 #abe1 and    
#abi of the ,internal ,revenue ,code of 
#aihf1 a flexible spending arrangement  
must allow a qualified #bjbj            
distribution or rollover4  7b7 ,taxes   

applied to certain distributions ,for   
purposes of sections #abe7;a7 and       
#abi7;a7 of such ,code1 such sections   
shall not apply to any benefit          
distributed from a flexible spending    
arrangement for a use other than the    
qualifying benefit for which such       
arrangement was established4  7c7       
,special rule for disposition of unused 
benefits ,for purposes of such ,code1 a 
plan shall not fail to be treated as a  
cafeteria plan1 health flexible spending
 arrangement1 or dependent care flexible
 spending arrangement merely because    
such arrangement provides for a         
qualified #bjbj distribution or         
rollover4  7d7 ,qualified #bjbj         
distribution or rollover ,for purposes  
of this section1 the term qualified     
#bjbj distribution or rollover means1   
for plan year #bjbj1 any distribution at
 any time to an individual of all or a  
portion of the balance in the employee's
 account under such arrangement1 or the 
rollover of the balance in the          

employee's account to plan year #bjba4  
7e7 ,application ,this section shall    
only apply to distributions or rollovers
 in plan year #bjbj4  #b4 ,change in    
election amount  7a7 ,in general ,a plan
 or other arrangement that otherwise    
satisfies all applicable requirements of
 sections #ajf and #abe of the ,internal
 ,revenue ,code of #aihf 7including any 
rules or regulations thereunder7 shall  
not fail to be treated as a cafeteria   
plan or health flexible spending        
arrangement merely because such plan or 
arrangement allows an employee to make1 
with respect to the remaining portion of
 a period of coverage within the        
applicable period-- 7#a7 an election    
modifying the amount of such employee's 
contributions to such a health flexible 
spending arrangement 7without regard to 
any change in status71 or  7#b7 an      
election modifying the amount of such   
employee's elective paid time off4 ,any 
election as modified under paragraph    
7#a7 shall not exceed the limitation    

applicable under section #abe7;i7 for   
the taxable year4  7b7 ,one-,time       
application ,paragraphs 7#a7 and 7#b7 of
 subsection 7a7 shall each apply to only
 #a election change described in such   
paragraph with respect to an employee   
7in addition to any other election      
changes during a period of coverage     
permitted under the plan or arrangement 
without regard to this section74  7c7   
,applicable period ,for purposes of this
 section1 the term applicable period    
means the period beginning on the date  
of the enactment of this ,act and ending
 on ,december #ca1 #bjbj4  #c4          
,extension of grace periods1 etc  7a7   
,in general ,a plan or other arrangement
 that otherwise satisfies all applicable
 requirements of sections #ajf1 #abe1 or
 #abi of the ,internal ,revenue ,code   
7including any rules or regulations     
thereunder7 shall not fail to be treated
 as a cafeteria plan1 health flexible   
spending arrangement1 or dependent care 
flexible spending arrangement 7whichever

 is applicable7 merely because such plan
 or arrangement extends the grace period
 for the plan year ending in #bjbj to   
#ab months after the end of such plan   
year1 with respect to unused benefits or
 contributions remaining in a health    
flexible spending arrangement or a      
dependent care flexible spending        
arrangement4  7b7 ,post-,termination    
reimbursements from health ,f,s,as ,a   
plan or other arrangement that otherwise
 satisfies all applicable requirements  
of sections #ajf and #abe of the        
,internal ,revenue ,code of #aihf       
7including any rules or regulations     
thereunder7 shall not fail to be treated
 as a cafeteria plan or health flexible 
spending arrangement merely because such
 plan or arrangement allows 7under rules
 similar to the rules applicable to     
dependent care flexible spending        
arrangements7 an employee who ceases    
participation in the plan during        
calendar year #bjbj to continue to      
receive reimbursements from unused      

benefits or contributions through the   
end of the plan year 7including any     
grace period1 taking into account any   
modification of a grace period permitted
 under subsection 7a774  7c7            
,definitions ,any term used in this     
section which is also used in section   
#ajf1 #abe1 or #abi of the ,internal    
,revenue ,code of #aihf or the rules or 
regulations thereunder shall have the   
same meaning as when used in such       
section or rules or regulations4