II 

116TH CONGRESS 

1ST SESSION S. 503 

To amend the Internal Revenue Code of 1986 to provide the opportunity 

for responsible health savings to all American families. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 14, 2019 

Mr. BLUNT (for himself and Ms. SINEMA) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

the opportunity for responsible health savings to all 

American families. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Responsible Additions 

5 and Increases to Sustain Employee Health Benefits Act 

6 of 2019’’. 

7 SEC. 2. EXPANDABLE HEALTH FLEXIBLE SPENDING AR8 RANGEMENTS. 

9 (a) EXPANSION OF ANNUAL MAXIMUM.— 


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1 (1) IN GENERAL.—Paragraph (1) of section 

2 125(i) of the Internal Revenue Code of 1986 is 

3 amended— 

4 (A) by striking ‘‘$2,500’’ and inserting 

5 ‘‘$5,000, with an additional $500 per each ad6 ditional employee dependent above two depend7 ents’’; and 

8 (B) by inserting at the end the following: 

9 ‘‘An additional employee dependent may not be 

10 taken into account under the preceding sen11 tence for any taxable year if such additional 

12 employee dependent has been taken into ac13 count by another person under such sentence 

14 for such taxable year.’’. 

15 (2) ADJUSTMENT FOR INFLATION.—Paragraph 

16 (2) of section 125(i) of the Internal Revenue Code 

17 of 1986 is amended— 

18 (A) by striking ‘‘December 31, 2013’’ and 

19 inserting ‘‘December 31, 2019’’; 

20 (B) by striking ‘‘the dollar amount’’ and 

21 inserting ‘‘each of the dollar amounts’’; and 

22 (C) in subparagraph (B), by striking ‘‘cal23 endar year 2012’’ and inserting ‘‘calendar year 

24 2018’’. 


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1 (b) CARRYFORWARD OF UNUSED BENEFITS.—Sec2 tion 125(i) of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new para4 graph: 

5 ‘‘(3) CARRYFORWARD OF UNUSED BENEFITS.— 

6 ‘‘(A) IN GENERAL.—A plan or arrange7 ment may permit a participant in a health flexi8 ble spending arrangement to elect to carry for9 ward any aggregate unused balances in the par10 ticipant’s accounts under such arrangement as 

11 of the close of any year to the succeeding year. 

12 Such carryforward shall be treated as having 

13 occurred within 30 days of the close of the year. 

14 ‘‘(B) LIMITATION.—The amount which a 

15 participant may elect to carry forward under 

16 subparagraph (A) from any year shall be any 

17 aggregate unused balances in the participant’s 

18 account at the close of any year. 

19 ‘‘(C) EXCLUSION FROM GROSS INCOME.— 

20 No amount shall be included in gross income 

21 under this chapter by reason of any carry for22 ward under this paragraph. 

23 ‘‘(D) COORDINATION LIMITS.—The max24 imum amount which may be contributed to a 

25 health flexible spending arrangement for any 


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1 year to which an unused amount is carried 

2 under this paragraph shall not be reduced by 

3 such unused amount.’’. 

4 (c) CONFORMING AMENDMENT.—Section 125(i) of 

5 the Internal Revenue Code of 1986 is amended by striking 

6 ‘‘LIMITATION ON FLEXIBLE SPENDING ARRANGEMENTS’’ 

7 in the heading and inserting ‘‘SPECIAL RULES FOR

8 HEALTH FLEXIBLE SPENDING ARRANGEMENTS’’. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect on the date of the enactment 

11 of this Act. 

Æ 


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