Title: To amend the Internal Revenue Code of 1986 to provide for the carryover of the remaining 2020 balance in health flexible spending arrangements.
Policy area: Taxation

Summary:
This bill allows a participant in a health flexible spending arrangement to carry over any portion of the balance in such participant's account at the end of the 2020 plan year to the plan year beginning in 2021.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6824 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6824

To amend the Internal Revenue Code of 1986 to provide for the carryover 
of the remaining 2020 balance in health flexible spending arrangements.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2020

Mr. Kilmer (for himself and Mrs. Rodgers of Washington) 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 for the carryover 
of the remaining 2020 balance in health flexible spending arrangements.

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

SECTION 1. CARRYOVER OF REMAINING 2020 BALANCE IN HEALTH FLEXIBLE 
              SPENDING ARRANGEMENTS.

    (a) In General.--Section 125 of the Internal Revenue Code of 1986 
is amended by redesignating subsections (k) and (l) as subsections (l) 
and (m), respectively, and by inserting after subsection (j) the 
following:
    ``(k) Health FSA.--For purposes of this title--
            ``(1) Carryover to 2021.--Any portion of the balance in the 
        employee's account under a health flexible spending arrangement 
        remaining at the end of the plan year beginning in 2020 may be 
        carried to the first plan year beginning in 2021.
            ``(2) Treatment of carryover amount.--Of the amount carried 
        to 2021 under paragraph (1)--
                    ``(A) $500 shall not be treated as a contribution 
                to such arrangement for the first plan year beginning 
                in 2021, and
                    ``(B) the amount that exceeds $500 shall be treated 
                as a contribution to such arrangement for the first 
                plan year beginning in 2021.
            ``(3) Treatment as cafeteria plan and health fsa.--A plan 
        or other arrangement shall not fail to be treated as a 
        cafeteria plan or health flexible spending arrangement (and 
        shall not fail to be treated as an accident or health plan) for 
        a plan year ending in 2020 or 2021 merely because such plan or 
        other arrangement allows all or a portion of the balance in the 
        employee's account under such arrangement to be used in the 
        first plan year beginning in 2021.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to years ending after the date of the enactment of this Act.
                                 <all>