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HR 3947 IH
110th CONGRESS
1st Session
H. R. 3947
To amend the Internal Revenue Code of 1986 to provide for a carryforward of unused benefits in health flexible spending arrangements.
IN THE HOUSE OF REPRESENTATIVES
October 23, 2007
Mr. LARSON of Connecticut (for himself, Mr. CAMP of Michigan, Mrs. MCCARTHY of New York, Mr. BURTON of Indiana, Mr. ENGLISH of Pennsylvania, Mr. FRANKS of Arizona, Mr. LEWIS of Kentucky, Mr. PAUL, Mr. RAMSTAD, Mr. SESTAK, and Mr. SOUDER) 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 a carryforward of unused benefits 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. CARRYFORWARD OF UNUSED BENEFITS IN HEALTH FLEXIBLE SPENDING ARRANGEMENTS.
(a) In General- Section 125 of the Internal Revenue Code of 1986 (relating to cafeteria plans) is amended by redesignating subsections (h) and (i) as subsections (i) and (j), respectively, and by inserting after subsection (g) the following:
`(h) Carryforward of Certain Unused Health Benefits-
`(1) IN GENERAL- For purposes of this title, a plan or other arrangement shall not fail to be treated as a cafeteria plan solely because qualified benefits under such plan include a health flexible spending arrangement under which not more than $500 of unused health benefits may be carried forward to the succeeding plan year of such health flexible spending arrangement.
`(2) HEALTH FLEXIBLE SPENDING ARRANGEMENT- For purposes of this subsection, the term `health flexible spending arrangement' means a flexible spending arrangement (as defined in section 106(c)) that is a qualified benefit and only permits reimbursement for expenses for medical care (as defined in section 213(d)(1), without regard to subparagraphs (C) and (D) thereof).
`(3) UNUSED HEALTH BENEFITS- For purposes of this subsection, with respect to an employee, the term `unused health benefits' means the excess of--
`(A) the maximum amount of reimbursement allowable to the employee for a plan year under a health flexible spending arrangement, over
`(B) the actual amount of reimbursement for such year under such arrangement.
`(4) TERMINATION- Paragraph (1) shall not apply to plan years beginning after December 31, 2009.'.
(b) Effective Date- The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2006.
U.S. Congress - Text of H.R.3947 as Introduced in House To amend the Internal Revenue Code of 1986 to provide for a carryforward of unused bene...
