I 

117TH CONGRESS 

1ST SESSION H. R. 1860 

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

for responsible health savings to all American families. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 11, 2021 

Mr. STIVERS (for himself, Mr. VICENTE GONZALEZ of Texas, Mr. KELLY of 

Pennsylvania, Mrs. BEATTY, Mr. ALLEN, Mr. COHEN, Ms. NORTON, Mr. 

JOHNSON of Ohio, Mr. RODNEY DAVIS of Illinois, Mr. BALDERSON, Mr. 

GROTHMAN, Mr. FITZPATRICK, Mr. GOSAR, Mr. CHABOT, Mr. RUPPERSBERGER, Mrs. WAGNER, Mr. BAIRD, Mr. EMMER, and Ms. MENG) introduced the following bill; which was referred to the Committee on Ways 

and Means 

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 2021’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 1860 IH

1 SEC. 2. EXPANDABLE HEALTH FLEXIBLE SPENDING AR2 RANGEMENTS. 

3 (a) EXPANSION OF ANNUAL MAXIMUM.— 

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

5 125(i) of the Internal Revenue Code of 1986 is 

6 amended— 

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

8 ‘‘$5,000, with an additional $500 per each ad9 ditional employee dependent above two depend10 ents’’, and 

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

12 ‘‘An additional employee dependent may not be 

13 taken into account under the preceding sen14 tence for any taxable year if such additional 

15 employee dependent has been taken into ac16 count by another person under such sentence 

17 for such taxable year.’’. 

18 (2) ADJUSTMENT FOR INFLATION.—Paragraph 

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

20 of 1986 is amended— 

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

22 inserting ‘‘December 31, 2022’’, 

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

24 inserting ‘‘each of the dollar amounts’’, and 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 1860 IH

1 (C) in subparagraph (B), by striking ‘‘cal2 endar year 2012’’ and inserting ‘‘calendar year 

3 2021’’. 

4 (b) CARRYFORWARD OF UNUSED BENEFITS.—Sec5 tion 125(i) of the Internal Revenue Code of 1986 is 

6 amended by adding at the end the following new para7 graph: 

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

9 ‘‘(A) IN GENERAL.—A plan or arrange10 ment may permit a participant in a health flexi11 ble spending arrangement to elect to carry for12 ward any aggregate unused balances in the par13 ticipant’s accounts under such arrangement as 

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

15 Such carryforward shall be treated as having 

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

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

18 participant may elect to carry forward under 

19 subparagraph (A) from any year shall be any 

20 aggregate unused balances in the participant’s 

21 account at the close of any year. 

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

23 No amount shall be included in gross income 

24 under this chapter by reason of any carryfor25 ward under this paragraph. 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 1860 IH

1 ‘‘(D) COORDINATION LIMITS.—The max2 imum amount which may be contributed to a 

3 health flexible spending arrangement for any 

4 year to which an unused amount is carried 

5 under this paragraph shall not be reduced by 

6 such unused amount.’’. 

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

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘LIMITATION ON HEALTH FLEXIBLE SPENDING AR10 RANGEMENTS’’ in the heading and inserting ‘‘SPECIAL

11 RULES FOR HEALTH FLEXIBLE SPENDING ARRANGE12 MENTS’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2021. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS