,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hcad  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #ae1 #bjbf,mr4 
,/eube 7= himself & ,ms4 ,del,bene7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to e/abli% t employ]s may 
(f] employees a *oice among tax-favor$  
employ] contributions4  #a4 ,%ort title 
,?is ,act may be cit$ z ! ,optimiz+     
,p>ticipant ,tax ,inc5tives ?r\gh       
,optional ,nonca% ,selections ,act or ! 
,,options ,act4  #b4 ,exclusion ( c]ta9 
employ]-provid$ b5efits "u a qualifi$   
b5efit options plan  7a7 ,9 g5]al ,"p   
,,iii ( sub*apt] ,b ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #abe ! foll[+ new
 section3  #abe;,a4 ,qualifi$ b5efit    
options plans  7a7 ,9 g5]al ,except z   
provid$ 9 subsection 7c71 no am\nt %all 
be includ$ 9 ! gross income ( a         
p>ticipant 9 a qualifi$ b5efit options  
plan solely because1 "u ! plan1 !       

p>ticipant may *oose among ! b5efits ( !
 plan4  7b7 ,qualifi$ b5efit options    
plan ,= purposes ( ?is section-- 7#a7 ,9
 g5]al ,! t]m qualifi$ b5efit options   
plan means a writt5 plan or arrangem5t  
(f]$ by an employ] to employees & =m]   
employees 7includ+ retir$ employees7 ( !
 employ]1 "u :i* p>ticipants--  7,a7 may
 elect to allocate employ] contributions
 among qualifi$ b5efits1 &  7,b7 may n  
elect to receive ca% or any o!r taxable 
b5efit in/ead ( qualifi$ b5efits4  7#b7 
,qualifi$ b5efits ,! t]m qualifi$       
b5efits includes-- 7,a7 non-elective    
employ] contributions :i* are exclud$ f 
gross income "u section #djb or #djc1   
7,b7 contributions to a heal?           
reimbursem5t arrangem5t or heal? sav+s  
acc\nt :i* are exclud$ f gross income "u
 section #aje or #ajf1  7,c7 am\nts paid
 by an employ] pursuant to a qualifi$   
educational assi/ance program :i* are   
exclud$ f gross income "u section #abg1 
&  7,d7 o!r b5efits :i* are exclud$ f   
gross income "u any o!r provision ( ?is 

*apt]4  7c7 ,exception = highly         
comp5sat$ p>ticipants & key employees1  
etc ,rules simil> to ! rules (          
subsections 7b71 7c71 7e71 & 7g7 (      
section #abe %all apply = purposes ( ?is
 section4  7d7 ,application (           
nondiscrim9ation rules ,= purposes (    
apply+ ! requirem5ts ( sections         
#dja7;a77#d7 & #daf1 9 ! case ( any     
qualifi$ plan describ$ 9 section        
#dja7;a7 t is includ$ z a qualifi$      
b5efit "u ?is section1 ! am\nt ( any    
employ] contribution made available to a
 p>ticipant %all be treat$ z an employ] 
contribution made to su* plan1 )\t reg>d
 to :e!r ! p>ticipant elects to h any   
portion ( su* am\nt contribut$ to su*   
plan4  7e7 ,cross-,ref]5ce ,= report+ & 
recordkeep+ requirem5ts1 see section    
#fjci;,d4  4  7b7 ,report+ & recordkeep+
 ,subsection 7d7 ( section #fjci;,d ( ! 
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by ins]t+ 1 #abe;,a aft]   
#abe 9 p>agraph 7#a71 &  7#b7 by add+ at
 ! end ( p>agraph 7#b7 ! foll[+3 ,9 !   

case ( a qualifi$ b5efit options plan "u
 section #abe;,a1 su* t]m means1 )      
respect to su* plan1 ! section "u :i*   
ea* qualifi$ b5efit 7z def9$ 9 section  
#abe;,a7b77#b77 includ$ 9 ! plan is     
excludable f gross income44  7c7        
,cl]ical am5dm5t ,! table ( sections =  
"p ,,iii ( sub*apt] ,b ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#abe ! foll[+ new item3  ,sec4 #abe;,a4 
,qualifi$ b5efit options plans4  4  7d7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4