A bill to amend the Internal Revenue Code of 1986 to clarify the special rules for accident and health plans of certain governmental entities, and for other purposes.

Bill: 114-s-1667
Sponsor: full_name: Sen. Cantwell, Maria [D-WA]
Introduced: 2015-06-24
Policy area: Taxation
Subjects: Employee benefits and pensions

Government employee pay, benefits, personnel management

Health care costs and insurance

Income tax exclusion

State and local government operations

Tax administration and collection, taxpayers
Latest action: action_date: 2015-06-24
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2015-06-24
action_desc: Introduced in Senate
text: <p>Amends the Internal Revenue Code, with respect to the exclusion from gross income of payments from an accident or health plan, to: (1) make the exclusion for payments to a beneficiary other than a spouse or dependent child applicable to plans established by or on behalf of a state or political subdivision thereof; and (2) define a "qualified taxpayer," for purposes of the exclusion, as an employee or the spouse, dependent, or child (under age 27) of an employee.</p>

tv_txt: II 114th CONGRESS 1st Session S. 1667 IN THE SENATE OF THE UNITED STATES June 24, 2015 Ms. Cantwell (for herself, Mr. Crapo , Ms. Klobuchar , and Mrs. Murray ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to clarify the special rules for accident and health plans of certain governmental entities, and for other purposes.

1. Clarification of special rule for certain governmental plans (a) In general Paragraph (1) of section 105(j) of the Internal Revenue Code of 1986 is amended— (1) by striking the taxpayer and inserting a qualified taxpayer , and (2) by striking deceased plan participant's beneficiary and inserting deceased employee's beneficiary (other than an individual described in paragraph (3)(B)) . (b) Qualified taxpayer Subsection (j) of section 105 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Qualified taxpayer For purposes of paragraph (1), with respect to an accident or health plan described in paragraph (2), the term qualified taxpayer means a taxpayer who is— (A) an employee, or (B) the spouse, dependent (as defined for purposes of subsection (b)), or child (as defined for purposes of such subsection) of an employee. . (c) Application to political subdivisions of States Paragraph (2) of section 105(j) of the Internal Revenue Code of 1986 is amended— (1) by inserting or established by or on behalf of a State or political subdivision thereof after public retirement system , and (2) by inserting or 501(c)(9) after section 115 in subparagraph (B). (d) Effective date The amendments made by this section shall apply to payments after the date of the enactment of this Act.