I 

116TH CONGRESS 

2D SESSION H. R. 7008 

To amend the Internal Revenue Code of 1986 to provide flexibility for families 

with health flexible spending arrangements and dependent care flexible 

spending arrangements, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2020 

Mr. WENSTRUP (for himself, Mrs. AXNE, and Mr. KELLY of Pennsylvania) 

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 

flexibility for families with health flexible spending arrangements and dependent care flexible spending arrangements, and for other purposes. 

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 ‘‘Family Savings Flexi5 bility Act’’. 


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1 SEC. 2. INCREASE IN CARRYOVER FOR HEALTH FLEXIBLE 

2 SPENDING ARRANGEMENTS. 

3 (a) IN GENERAL.—A plan or other arrangement that 

4 otherwise satisfies all of the applicable requirements of 

5 sections 106 and 125 of the Internal Revenue Code of 

6 1986 (including any rules or regulations thereunder) shall 

7 not fail to be treated as a cafeteria plan or health flexible 

8 spending arrangement merely because such plan or ar9 rangement permits participants to carry over an amount 

10 not in excess of $2,750 of unused benefits or contributions 

11 remaining in a health flexible spending arrangement from 

12 the plan year ending in 2020 to the plan year ending in 

13 2021. 

14 (b) DEFINITIONS.—Any term used in this section 

15 which is also used in section 106 or 125 of the Internal 

16 Revenue Code of 1986 or the rules or regulations there 

17 under shall have the same meaning as when used in such 

18 section or rules or regulations. 

19 SEC. 3. CARRYOVER FOR DEPENDENT CARE FLEXIBLE 

20 SPENDING ARRANGEMENTS. 

21 (a) IN GENERAL.—A plan or other arrangement that 

22 otherwise satisfies all applicable requirements of sections 

23 106, 125, and 129 of the Internal Revenue Code of 1986 

24 (including any rules or regulations thereunder) shall not 

25 fail to be treated as a cafeteria plan or dependent care 

26 flexible spending arrangement merely because such plan 


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1 or arrangement permits participants to carry over (under 

2 rules similar to the rules applicable to health flexible 

3 spending arrangements) an amount, not in excess of the 

4 amount in effect under section 129(a)(2)(A) of such Code, 

5 of unused benefits or contributions remaining in a depend6 ent care flexible spending arrangement from the plan year 

7 ending in 2020 to the plan year ending in 2021. 

8 (b) DEFINITIONS.—Any term used in this section 

9 which is also used in section 106, 125, or 129 of the Inter10 nal Revenue Code of 1986 or the rules or regulations 

11 thereunder shall have the same meaning as when used in 

12 such section or rules or regulations. 

13 SEC. 4. MAXIMUM CONTRIBUTION LIMIT TO HEALTH SAV14 INGS ACCOUNT INCREASED TO AMOUNT OF 

15 DEDUCTIBLE AND OUT-OF-POCKET LIMITA16 TION. 

17 (a) SELF-ONLY COVERAGE.—Section 223(b)(2)(A) 

18 of the Internal Revenue Code of 1986 is amended by strik19 ing ‘‘$2,250’’ and inserting ‘‘the amount in effect under 

20 subsection (c)(2)(A)(ii)(I)’’. 

21 (b) FAMILY COVERAGE.—Section 223(b)(2)(B) of 

22 such Code is amended by striking ‘‘$4,500’’ and inserting 

23 ‘‘the amount in effect under subsection (c)(2)(A)(ii)(II)’’. 


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1 (c) CONFORMING AMENDMENT.—Section 223(g)(1) 

2 of such Code is amended by striking ‘‘subsections (b)(2) 

3 and’’ both places it appears and inserting ‘‘subsection’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2019. 

7 SEC. 5. INCREASE IN EXCLUSION FOR EMPLOYER-PRO8 VIDED DEPENDENT CARE ASSISTANCE. 

9 (a) IN GENERAL.—Section 129(a)(2) of the Internal 

10 Revenue Code of 1986 is amended by adding at the end 

11 the following new subparagraph: 

12 ‘‘(D) SPECIAL RULE FOR 2020.—In the 

13 case of any taxable year beginning during 2020, 

14 subparagraph (A) shall be applied by sub15 stituting ‘$10,000 (half such dollar amount’ for 

16 ‘$5,000 ($2,500’.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2019. 

20 (c) RETROACTIVE PLAN AMENDMENTS.—A plan or 

21 other arrangement that otherwise satisfies all applicable 

22 requirements of sections 106, 125, and 129 of the Internal 

23 Revenue Code of 1986 (including any rules or regulations 

24 thereunder) shall not fail to be treated as a cafeteria plan 

25 or dependent care flexible spending arrangement merely 


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1 because such plan or arrangement is amended pursuant 

2 to a provision under this section and such amendment is 

3 retroactive, if— 

4 (1) such amendment is adopted no later than 

5 the last day of the plan year in which the amend6 ment is effective, and 

7 (2) the plan or arrangement is operated con8 sistent with the terms of such amendment during 

9 the period beginning on the effective date of the 

10 amendment and ending on the date the amendment 

11 is adopted. 

Æ 


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