[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 682 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 682

To amend the Internal Revenue Code of 1986 to increase the contribution 
limits to dependent care flexible spending accounts and to provide for 
             a carryover of unused dependent care benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 11, 2011

    Mr. Sensenbrenner (for himself and Mrs. Capito) 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 increase the contribution 
limits to dependent care flexible spending accounts and to provide for 
             a carryover of unused dependent care benefits.

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

SECTION 1. INCREASE IN CONTRIBUTION LIMITS TO DEPENDENT CARE FLEXIBLE 
              SPENDING ACCOUNTS.

    (a) In General.--Section 125 of the Internal Revenue Code of 1986 
(relating to cafeteria plans) is amended by redesignating subsections 
(i) and (j) as subsections (j) and (k), respectively, and by inserting 
after subsection (h) the following new subsection:
    ``(i) Limitation on Maximum Annual Benefits Under Dependent Care 
Flexible Spending Accounts.--
            ``(1) In general.--For purposes of this title, a plan or 
        other arrangement shall not fail to be treated as a cafeteria 
        plan or dependent care flexible spending arrangement merely 
        because qualified benefits under such plan include a dependent 
        care flexible spending arrangement under which the maximum 
        annual benefit for the taxable year is not more than $3,750 
        ($7,500 in the case of a joint return).
            ``(2) Dependent care flexible spending arrangement.--For 
        purposes of this subsection, the term `dependent care 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 dependent care 
        assistance.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after December 31, 2011.

SEC. 2. CARRYOVER OF UNUSED DEPENDENT CARE BENEFITS IN CAFETERIA PLANS 
              AND FLEXIBLE SPENDING ARRANGEMENTS.

    (a) In General.--Section 125 of the Internal Revenue Code of 1986 
(relating to cafeteria plans), as amended by section 1, is amended by 
redesignating subsections (j) and (k) as subsections (k) and (l), 
respectively, and by inserting after subsection (i) the following new 
subsection:
    ``(j) Carryover of Unused Dependent Care Benefits.--
            ``(1) In general.--For purposes of this title, a plan or 
        other arrangement shall not fail to be treated as a cafeteria 
        plan or dependent care flexible spending arrangement (as 
        defined in subsection (i)(2)) solely because qualified benefits 
        under such plan include a dependent care flexible spending 
        arrangement under which unused dependent care benefits may be 
        carried forward to the succeeding plan year of such flexible 
        spending arrangement.
            ``(2) Unused health benefits.--For purposes of this 
        subsection, with respect to an employee, the term `unused 
        dependent care benefits' means the excess of--
                    ``(A) the maximum amount of reimbursement allowable 
                to the employee during a plan year under a dependent 
                care flexible spending arrangement, taking into account 
                any election by the employee, over
                    ``(B) the actual amount of reimbursement during 
                such year under such arrangement.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years ending after the date of the enactment of this Act.
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