[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4372 Referred in Senate (RFS)]
2d Session
H. R. 4372
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 23 (legislative day, June 22), 2004
Received; read twice and referred to the Committee on Finance
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to provide for the
carryforward of $500 of unused benefits in cafeteria plans and flexible
spending arrangements for dependent care assistance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Working Families Assistance Act of
2004''.
SEC. 2. CARRYFORWARD OF UNUSED BENEFITS IN CAFETERIA PLANS AND FLEXIBLE
SPENDING ARRANGEMENTS FOR DEPENDENT CARE ASSISTANCE.
(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 new subsection:
``(h) Carryforward of Certain Unused Benefits for Dependent Care.--
``(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 dependent care flexible spending arrangement under which not
more than $500 of unused dependent care benefits may be carried
forward to the succeeding plan year of such dependent care
flexible spending arrangement.
``(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 which meets the requirements of section 129(d).
``(3) Unused dependent care 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 for a plan year under a dependent care
flexible spending arrangement, over
``(B) the actual amount of reimbursement for such
year under such arrangement.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to taxable years beginning after December 31, 2003.
Passed the House of Representatives June 22, 2004.
Attest:
JEFF TRANDAHL,
Clerk.