I 
116TH CONGRESS 
2D SESSION 
H. R. 7666 
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 
JULY 16, 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 ar-
rangements and dependent care flexible spending ar-
rangements, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Family Savings Flexi-
bility Act’’. 
VerDate Sep 11 2014 
05:58 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7666.IH
H7666
kjohnson on DSK79L0C42PROD with BILLS
SEC. 2. INCREASE IN CARRYOVER FOR HEALTH FLEXIBLE 
SPENDING ARRANGEMENTS. 
(a) IN GENERAL.—A plan or other arrangement that 
otherwise satisfies all of the applicable requirements of 
sections 106 and 125 of the Internal Revenue Code of 
1986 (including any rules or regulations thereunder) shall 
not fail to be treated as a cafeteria plan or health flexible 
spending arrangement merely because such plan or ar-
rangement permits participants to carry over an amount 
not in excess of $2,750 of unused benefits or contributions 
remaining in a health flexible spending arrangement from 
the plan year ending in 2020 to the plan year ending in 
2021. 
(b) DEFINITIONS.—Any term used in this section 
which is also used in section 106 or 125 of the Internal 
Revenue Code of 1986 or the rules or regulations there 
under shall have the same meaning as when used in such 
section or rules or regulations. 
SEC. 3. CARRYOVER FOR DEPENDENT CARE FLEXIBLE 
SPENDING ARRANGEMENTS. 
(a) IN GENERAL.—A plan or other arrangement that 
otherwise satisfies all applicable requirements of sections 
106, 125, and 129 of the Internal Revenue Code of 1986 
(including any rules or regulations thereunder) shall not 
fail to be treated as a cafeteria plan or dependent care 
flexible spending arrangement merely because such plan 
VerDate Sep 11 2014 
05:58 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7666.IH
H7666
kjohnson on DSK79L0C42PROD with BILLS
or arrangement permits participants to carry over (under 
rules similar to the rules applicable to health flexible 
spending arrangements) an amount, not in excess of the 
amount in effect under section 129(a)(2)(A) of such Code, 
of unused benefits or contributions remaining in a depend-
ent care flexible spending arrangement from the plan year 
ending in 2020 to the plan year ending in 2021. 
(b) DEFINITIONS.—Any term used in this section 
which is also used in section 106, 125, or 129 of the Inter-
nal Revenue Code of 1986 or the rules or regulations 
thereunder shall have the same meaning as when used in 
such section or rules or regulations. 
SEC. 4. MAXIMUM CONTRIBUTION LIMIT TO HEALTH SAV-
INGS ACCOUNT INCREASED TO AMOUNT OF 
DEDUCTIBLE AND OUT-OF-POCKET LIMITA-
TION. 
(a) SELF-ONLY COVERAGE.—Section 223(b)(2)(A) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘$2,250’’ and inserting ‘‘the amount in effect under 
subsection (c)(2)(A)(ii)(I)’’. 
(b) FAMILY COVERAGE.—Section 223(b)(2)(B) of 
such Code is amended by striking ‘‘$4,500’’ and inserting 
‘‘the amount in effect under subsection (c)(2)(A)(ii)(II)’’. 
VerDate Sep 11 2014 
05:58 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7666.IH
H7666
kjohnson on DSK79L0C42PROD with BILLS
(c) CONFORMING AMENDMENT.—Section 223(g)(1) 
of such Code is amended by striking ‘‘subsections (b)(2) 
and’’ both places it appears and inserting ‘‘subsection’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 5. INCREASE IN EXCLUSION FOR EMPLOYER-PRO-
VIDED DEPENDENT CARE ASSISTANCE. 
(a) IN GENERAL.—Section 129(a)(2) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘$5,000 
($2,500’’ and inserting ‘‘$10,000 ($5,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
(c) RETROACTIVE PLAN AMENDMENTS.—A plan or 
other arrangement that otherwise satisfies all applicable 
requirements of sections 106, 125, and 129 of the Internal 
Revenue Code of 1986 (including any rules or regulations 
thereunder) shall not fail to be treated as a cafeteria plan 
or dependent care flexible spending arrangement merely 
because such plan or arrangement is amended pursuant 
to a provision under this section and such amendment is 
retroactive, if— 
VerDate Sep 11 2014 
05:58 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7666.IH
H7666
kjohnson on DSK79L0C42PROD with BILLS
(1) such amendment is adopted no later than 
the last day of the plan year in which the amend-
ment is effective, and 
(2) the plan or arrangement is operated con-
sistent with the terms of such amendment during 
the period beginning on the effective date of the 
amendment and ending on the date the amendment 
is adopted. 
Æ 
VerDate Sep 11 2014 
05:58 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H7666.IH
H7666
kjohnson on DSK79L0C42PROD with BILLS