S.Amdt. 3171

SA 3171. Mr. PRYOR submitted an amendment intended to be proposed to
amendment SA 2786 proposed by Mr. Reid (for himself, Mr. Baucus, Mr.
Dodd, and Mr. Harkin) to the bill H.R. 3590, to amend the Internal
Revenue Code of 1986 to modify the first-time homebuyers credit in the
case of members of the Armed Forces and certain other Federal
employees, and for other purposes; which was ordered to lie on the
table; as follows:

On page 1999, between lines 20 and 21, insert the
following:

SEC. 9005A. ANNUAL ROLLOVER OF HEALTH FSA BALANCES.

(a) In General.--Subsection (i) of section 125 of the
Internal Revenue Code of 1986, as added by section
9005(a)(2), is amended--
(1) by striking all matter before ``if a benefit'' and
inserting the following:
``(i) Special Rules Applicable to Health Flexible Spending
Arrangements.--
``(1) Limitation on contributions to health flexible
spending arrangements.--For purposes of this section,'', and
(2) by adding at the end the following new paragraph:
``(2) Allowance of carryover of unused amounts in health
flexible spending arrangements.--
``(A) In general.--For purposes of this title, a plan or
other arrangement shall not fail to be treated as a cafeteria
plan solely because under the plan or arrangement a
participant is permitted access to any unused amounts
attributable to salary reduction contributions under such
plan or arrangement in the manner provided under subparagraph
(B).
``(B) Carryover of unused amounts.--A plan or arrangement
may permit a participant in a health flexible spending
arrangement to elect to carry over so much of the unused
amounts attributable to salary reduction contributions under
such plan or arrangement as of the close of any calendar year
as does not exceed $1,000 to the immediately succeeding
calendar year.
``(C) Amounts not deferred compensation.--No amount shall
be treated as deferred compensation for purposes of this
title by reason of any carryover under this paragraph.
``(D) Coordination with contribution limit.--The maximum
amount which may be contributed to a health flexible spending
arrangement under paragraph (1) for any calendar year to
which an unused amount is carried over under this paragraph
shall be reduced by such amount.''.
(b) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after December 31,
2010.
______