[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3947 Introduced in House (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.
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