‘‘(i) satisfies the age requirements of 
section 152(c)(3)(A), 
‘‘(ii) bears a relationship to the tax-
payer described in section 152(d)(2)(H), 
and 
‘‘(iii) meets the requirements of sec-
tion 152(d)(1)(C), and 
‘‘(E) one individual who— 
‘‘(i) does not satisfy the age require-
ments of section 152(c)(3)(A), 
‘‘(ii) bears a relationship to the tax-
payer described in section 152(d)(2)(H), 
‘‘(iii) meets the requirements of sec-
tion 152(d)(1)(D), and 
‘‘(iv) is not the spouse of the taxpayer 
and does not bear any relationship to the 
taxpayer described in subparagraphs (A) 
through (G) of section 152(d)(2).’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (B) 
of section 162(l)(2) of such Code is amended by inserting 
‘‘, any dependent, or individual described in subparagraph 
(D) or (E) of paragraph (1) with respect to’’ after 
‘‘spouse’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 4. EXTENSION TO ELIGIBLE BENEFICIARIES OF SICK 
AND 
ACCIDENT 
BENEFITS 
PROVIDED 
TO 
MEMBERS OF A VOLUNTARY EMPLOYEES’ 
BENEFICIARY ASSOCIATION AND THEIR DE-
PENDENTS. 
(a) IN GENERAL.—Section 501(c)(9) of the Internal 
Revenue Code of 1986 (relating to list of exempt organiza-
tions) is amended by adding at the end the following new 
sentence: ‘‘For purposes of providing for the payment of 
sick and accident benefits to members of such an associa-
tion and their dependents, the term ‘dependents’ shall in-
clude any individual who is an eligible beneficiary (within 
the meaning of section 106(f)), as determined under the 
terms of a medical benefit, health insurance, or other pro-
gram under which members and their dependents are enti-
tled to sick and accident benefits.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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SEC. 5. FLEXIBLE SPENDING ARRANGEMENTS AND HEALTH 
REIMBURSEMENT ARRANGEMENTS. 
The Secretary of Treasury shall issue guidance of 
general applicability providing that medical expenses that 
otherwise qualify— 
(1) for reimbursement from a flexible spending 
arrangement under regulations in effect on the date 
of the enactment of this Act may be reimbursed 
from an employee’s flexible spending arrangement, 
notwithstanding the fact that such expenses are at-
tributable to any individual who is not the employ-
ee’s spouse or dependent (within the meaning of sec-
tion 105(b) of the Internal Revenue Code of 1986) 
but is an eligible beneficiary (within the meaning of 
section 106(f) of such Code) under the flexible 
spending arrangement with respect to the employee, 
and 
(2) for reimbursement from a health reimburse-
ment arrangement under regulations in effect on the 
date of the enactment of this Act may be reimbursed 
from an employee’s health reimbursement arrange-
ment, notwithstanding the fact that such expenses 
are attributable to an individual who is not a spouse 
or dependent (within the meaning of section 105(b) 
of such Code) but is an eligible beneficiary (within 
the meaning of section 106(f) of such Code) under 
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the health reimbursement arrangement with respect 
to the employee. 
SEC. 6. EXTENSION OF QUALIFIED MEDICAL EXPENSES 
FROM HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Subparagraph (A) of section 
223(d)(2) of the Internal Revenue Code of 1986 (relating 
to qualified medical expenses) is amended— 
(1) by striking ‘‘and any dependent’’ and in-
serting ‘‘any dependent’’, and 
(2) by inserting ‘‘, and any qualified bene-
ficiary’’ after ‘‘thereof)’’. 
(b) QUALIFIED BENEFICIARY.—Section 223(d)(2) of 
such Code is amended by inserting after subparagraph (C) 
the following new subparagraph: 
‘‘(D) QUALIFIED BENEFICIARY.—For pur-
poses of subparagraph (A), the term ‘qualified 
beneficiary’ means any individual who is de-
scribed in subparagraph (D) or (E) of section 
162(l)(1).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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