[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4368 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4368

     To amend the Internal Revenue Code of 1986 to provide special 
disposition rules for unused benefits in flexible spending arrangements 
                 of individuals called to active duty.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 11, 2007

   Mr. Barton of Texas (for himself and Mr. Boucher) 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 special 
disposition rules for unused benefits in flexible spending arrangements 
                 of individuals called to active duty.

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

SECTION 1. SPECIAL DISPOSITION RULES FOR UNUSED BENEFITS IN FLEXIBLE 
              SPENDING ARRANGEMENTS OF INDIVIDUALS CALLED TO ACTIVE 
              DUTY.

    (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 subsection (i) and (j), respectively, and by inserting 
after subsection (g) the following new subsection:
    ``(h) Special Rule for Unused Benefits in Flexible Spending 
Arrangements of Individuals Called to Active Duty.--
            ``(1) In general.--For purposes of this title, a plan or 
        other arrangement shall not fail to be treated as a flexible 
        spending arrangement merely because such arrangement provides 
        for qualified reservist distributions.
            ``(2) Qualified reservist distribution.--For purposes of 
        this subsection, the term `qualified reservist distribution' 
        means, any distribution to an individual if--
                    ``(A) such individual was (by reason of being a 
                member of a reserve component (as defined in section 
                101 of title 37, United States Code)) ordered or called 
                to active duty for a period in excess of 179 days or 
                for an indefinite period, and
                    ``(B) such distribution is made during the period 
                beginning on the date of such order or call and ending 
                on the last date that distributions could otherwise be 
                made under such arrangement for the plan year which 
                includes the date of such order or call.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
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