,,ii #aaf? ,,congress #b;d ,session ,s4 #dcga ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #cj1 #bjbj,ms4 ,smi? 7= h]self & ,ms4 ,s9ema7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to require employ]s to ca% out ! flexible sp5d+ acc\nts ( employees :o sep>ate f employm5t1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,fair ,f,s,as ,act ( #bjbj4 #b4 ,ca%-outs ( flexible sp5d+ acc\nts 7a7 ,9 g5]al ,subsection 7h7 ( section #abe ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7h7 ,special rules = unus$ b5efits 9 heal? flexible sp5d+ arrangem5ts 7#a7 ,di/ributions ^u t]m9ation ( employm5t 7,a7 ,9 g5]al ,if a b5efit is provid$ "u a cafet]ia plan ?r\gh employ] contributions to a heal? flexible sp5d+ arrangem5t-- 7i7 su* plan or arrangem5t %all n fail to be treat$ z a cafet]ia plan or heal? flexible sp5d+ arrangem5t 7& %all n fail to be treat$ z an accid5t or heal? plan7 = purposes ( ?is title m]ely because su* arrangem5t provides = an election meet+ ! requirem5ts ( subp>agraph 7,b71 & 7ii7 su* b5efit %all n be treat$ z a qualifi$ b5efit = purposes ( ?is section unless su* arrangem5t provides = su* election4 7,b7 ,election ,! requirem5ts ( ?is subp>agraph are met if ! heal? flexible sp5d+ arrangem5t provides t1 if ! employee t]m9ates employm5t ) ! employ] 7:e!r volunt>ily or involunt>ily7 dur+ ! plan ye>1 ! employee may elect to receive 9 ca% an am\nt equal to-- 7i7 ! excess1 if any1 (-- 7,i7 all contributions made to ! arrangem5t = su* plan ye> z ( ! date ! employee t]m9ates employm5t ) ! employ]1 ov] 7,,ii7 ! am\nt ( reimbursem5ts receiv$ by ! employee "u su* arrangem5t dur+ su* plan ye> z ( ! date ! employee ceases to be a p>ticipant 9 ! arrangem5t 7includ+ any grace p]iod71 r$uc$ by 7ii7 ! am\nt ( tax )held "u subp>agraph 7,c74 7,c7 ,d$uction ( tax ,9 pay+ to an employee ! ca% paym5t elect$ "u subp>agraph 7,b71 ! employ] %all d$uct & )hold f ! employee an am\nt equal to-- 7i7 ! taxes :i* ! employ] w\ld h be5 requir$ to d$uct & )hold if ! employee _h receiv$ ! equival5t am\nt ( wages in/ead ( hav+ made sal>y r$uction contributions to ! heal? flexible sp5d+ arrangem5t1 & 7ii7 9 ! case ( a ca% paym5t ( any employ] contributions to ! heal? flexible sp5d+ arrangem5t1 ! taxes :i* ! employ] w\ld h be5 requir$ to d$uct & )hold if ! employee _h receiv$ ! equival5t am\nt ( wages 9 lieu ( su* contributions1 det]m9$ z if ! employee _h receiv$ su* wages on ! date ! ca% paym5t is made4 ,! am\nt ( tax s d$uct$ & )held %all be remitt$ by ! employ] 9 ! same mann] z am\nts collect$ "u section #cajb4 7#b7 ,qualifi$ res]vi/ di/ributions 7,a7 ,9 g5]al ,= purposes ( ?is title1 a plan or o!r arrangem5t %all n fail to be treat$ z a cafet]ia plan or heal? flexible sp5d+ arrangem5t 7& %all n fail to be treat$ z an accid5t or heal? plan7 m]ely because su* arrangem5t provides = qualifi$ res]vi/ di/ributions4 7,b7 ,qualifi$ res]vi/ di/ribution ,= purposes ( ?is p>agraph1 ! t]m qualifi$ res]vi/ di/ribution means any di/ribution to an individual ( all or a portion ( ! balance 9 ! employee's acc\nt "u su* arrangem5t if-- 7i7 su* individual 0 7by reason ( be+ a memb] ( a res]ve compon5t 7z def9$ 9 section #aja ( title #cg1 ,unit$ ,/ates ,code77 ord]$ or call$ to active duty = a p]iod 9 excess ( #agi days or = an indef9ite p]iod1 & 7ii7 su* di/ribution is made dur+ ! p]iod beg9n+ on ! date ( su* ord] or call & end+ on ! la/ date t reimbursem5ts c\ld o!rwise be made "u su* arrangem5t = ! plan ye> :i* includes ! date ( su* ord] or call4 4 7b7 ,treatm5t z accid5t or heal? plan ,section #ajf ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7h7 ,di/ributions ^u t]m9ation ( employm5t ,a plan %all n fail to be treat$ z a heal? flexible sp5d+ arrangem5t "u ?is section or section #aje m]ely because su* plan provides = an election meet+ ! requirem5ts ( section #abe7;h77#a77;,b74 4 7c7 ,excise tax on failure ,to provide di/ributions ^u t]m9ation ( employm5t 7#a7 ,9 g5]al ,*apt] #dc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #dihj ! foll[+ new section3 #dihj;,a4 ,failure to provide di/ributions f heal? flexible sp5d+ arrangem5ts ^u t]m9ation ( employm5t 7a7 ,g5]al rule ,!re is h]eby impos$ a tax on ! failure ( a cov]$ cafet]ia plan to meet ! requirem5ts ( section #abe7;h77#a7 7includ+ a failure to )hold & remit any tax z requir$ by subp>agraph 7,c7 !re(7 ) respect to any employee4 7b7 ,am\nt ( tax 7#a7 ,9 g5]al ,! am\nt ( ! tax impos$ by subsection 7a7 on any failure ) respect to an employee %all be #ajj = ea* day 9 ! noncompliance p]iod ) respect to su* failure4 7#b7 ,noncompliance p]iod ,= purposes ( ?is section1 ! t]m noncompliance p]iod means1 ) respect to any failure1 ! p]iod-- 7,a7 beg9n+ on ! date su* failure fir/ occurs1 & 7,b7 end+ on ! e>li] (-- 7i7 ! date su* failure is correct$1 or 7ii7 ! date :i* is #f mon?s aft] ! date ! employee t]m9ates employm5t ) ! employ]4 7#c7 ,limitations ,rules simil> to ! rules ( subsections 7b77#c7 & 7c7 ( section #dihj;,b %all apply ) respect to ! tax "u ?is section4 7c7 ,cov]$ cafet]ia plan ,= purposes ( ?is section1 ! t]m cov]$ cafet]ia plan means a cafet]ia plan 7z def9$ 9 section #abe7;d77 "u :i* a b5efit is provid$ ?r\gh employ] contributions to a heal? flexible sp5d+ arrangem5t4 7d7 ,liability = tax ,rules simil> to ! rules ( section #dihj;,b7e7 %all apply = purposes ( det]m9+ liability = ! tax impos$ "u ?is section4 4 7#b7 ,cl]ical am5dm5t ,! table ( sections = *apt] #dc ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #dihj ! foll[+ new item3 ,sec4 #dihj;,a4 ,failure to provide di/ributions f heal? flexible sp5d+ arrangem5ts ^u t]m9ation ( employm5t4 4 7d7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,plan am5dm5ts ,a plan or arrangem5t %all n be treat$ z violat+ ! requirem5ts ( section #abe7;h77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section 7includ+ = purposes ( section #dihj;,a ( su* ,code1 z s add$71 if-- 7,a7 ! plan or arrangem5t is am5d$ to meet su* requirem5ts on or be=e ! la/ day ( ! fir/ plan ye> beg9n+ aft] ! date ( ! enactm5t ( ?is ,act1 7,b7 su* am5dm5t applies retroactively to ! fir/ day ( su* fir/ plan ye>1 & 7,c7 ! plan or arrangem5t op]ates 9 accordance ) su* requirem5ts z ( ! fir/ day ( su* fir/ plan ye>4 ,a plan or arrangem5t %all n be treat$ z fail+ to satisfy any requirem5t ( ! ,int]nal ,rev5ue ,code ( #aihf m]ely because ! plan or arrangem5t op]ates z provid$ 9 subp>agraph 7,c74 #c4 ,ext5sion ( "t = fil+ ,,fsa claims 7a7 ,9 g5]al ,not)/&+ any applicable rule or regulation "u section #abe ( ! ,int]nal ,rev5ue ,code ( #aihf1 a plan or o!r arrangem5t %all n fail to be treat$ z a cafet]ia plan or heal? flexible sp5d+ arrangem5t m]ely because su* arrangem5t p]mits p>ticipants :o make ! c]tification "u subsection 7b7 to c>ry ov] any am\nt ( unus$ b5efit or contribution 7)\t limitation7 f any plan ye> beg9n+ or end+ 9 #bjbj to ! subsequ5t plan ye>4 7b7 ,c]tification by employee ,9 apply+ = any c>ryov] p]mitt$ pursuant to subsection 7a71 ! employee %all c]tify t ! am\nt to be c>ri$ ov] is attributable to a r$uction 9 expect$ elective heal? c>e exp5ses 9 ! plan ye> due to ! outbreak ( coronavirus disease #bjai 7,,covid-#ai7 9 ! ,unit$ ,/ates4 7c7 ,def9itions ,any t]m us$ 9 ?is section :i* is also us$ 9 section #ajf or #abe ( ! ,int]nal ,rev5ue ,code ( #aihf or ! rules or regulations !reund] %all h ! same mean+ z :5 us$ 9 su* section or regulations4