Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2015

Bill: 114-hr-1185
Sponsor: full_name: Rep. Stivers, Steve [R-OH-15]
Introduced: 2015-02-27
Policy area: Taxation
Subjects: Employee benefits and pensions

Health care costs and insurance

Income tax exclusion

Inflation and prices
Latest action: action_date: 2015-02-27
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2015-02-27
action_desc: Introduced in House
text: <p><strong>Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2015</strong></p> <p>This bill amends the Internal Revenue Code, with respect to the tax exclusion for distributions from health flexible spending arrangements, to: (1) increase to $5,000, with an additional $500 for each additional employee dependent above two dependents, the maximum annual amount of funding for such plans, and (2) allow a carryforward into the next year for unused amounts in such plans. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 1185 IN THE HOUSE OF REPRESENTATIVES February 27, 2015 Mr. Stivers (for himself, Ms. Michelle Lujan Grisham of New Mexico , Mr. Simpson , Mr. Zinke , Mr. Poliquin , Mr. Delaney , Mr. Chabot , Mr. Babin , Mrs. Blackburn , Mr. Fincher , Mr. Cramer , Mr. Tiberi , Mr. Kelly of Pennsylvania , Mr. Schock , Mr. Hultgren , Mr. Harper , Mr. Hanna , Mr. Gosar , Mr. Ashford , Mr. Peterson , Ms. Sinema , and Ms. Fudge ) 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 the opportunity for responsible health savings to all American families.

1. Short title This Act may be cited as the Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2015 . 2. Expandable health flexible spending arrangements (a) Expansion of annual maximum Paragraph (1) of section 125(i) of the Internal Revenue Code of 1986 is amended by striking $2,500 and inserting $5,000, with an additional $500 per each additional employee dependent above two dependents . (b) Carryforward of unused benefits Section 125(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Carryforward of unused benefits (A) In general A plan or arrangement may permit a participant in a health flexible spending arrangement to elect to carry forward any aggregate unused balances in the participant’s accounts under such arrangement as of the close of any year to the succeeding year. Such carryforward shall be treated as having occurred within 30 days of the close of the year. (B) Limitation The amount which a participant may elect to carry forward under subparagraph (A) from any year shall be any aggregate unused balances in the participant’s account at the close of any year. (C) Exclusion from gross income No amount shall be included in gross income under this chapter by reason of any carryforward under this paragraph. (D) Coordination limits The maximum amount which may be contributed to a health flexible spending arrangement for any year to which an unused amount is carried under this paragraph shall not be reduced by such unused amount. . (c) Conforming amendment Section 125(i) of the Internal Revenue Code of 1986 is amended by striking Limitation on flexible spending arrangements in the heading and inserting Special rules for health flexible spending arrangements . (d) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act.