IB
Union Calendar No. 363
112th CONGRESS
2d Session
H. R. 1004
[Report No. 112–515]
IN THE HOUSE OF REPRESENTATIVES
March 10, 2011
Mr. Boustany (for himself, Mr. Larson of Connecticut, Mr. Paulsen, Mr. Johnson of Illinois, Mr. Bishop of Georgia, and Mr. Burton of Indiana) introduced the following bill; which was referred to the Committee on Ways and Means
June 5, 2012
Additional sponsors: Mr. Schock, Ms. Speier, Mr. Paul, Mr. Reichert, Mr. Himes, Mr. Tiberi, Mr. Murphy of Connecticut, Mr. Gerlach, Mr. Davis of Kentucky, Mr. Roskam, Mr. Austria, Mr. Griffin of Arkansas, Mr. Cicilline, Mr. Harris, Ms. Herrera Beutler, Mr. Courtney, Mr. Hultgren, Mr. Nunes, Mrs. Black, Mr. Berg, Mr. Sam Johnson of Texas, Mr. Bartlett, Mr. Schilling, Mr. Terry, Mr. Amodei, Mr. Buchanan, and Mr. Walsh of Illinois
June 5, 2012
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
Strike out all after the enacting clause and insert the part printed in italic
A BILL
To amend the Internal Revenue Code of 1986 to increase participation in medical flexible spending arrangements.
Short title
This Act may be cited as the Health
Flexible Spending Arrangements Improvements Act of 2012
.
Taxable distributions of unused balances under health flexible spending arrangements
In general
Section 125 of the Internal Revenue Code of 1986 is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively, and by inserting after subsection (j) the following new subsection:
Taxable distributions of unused balances under health flexible spending arrangements
In general
For purposes of this section and sections 105(b) and 106, a plan or other arrangement which (but for any qualified distribution) would be a health flexible spending arrangement shall not fail to be treated as a cafeteria plan or health flexible spending arrangement (and shall not fail to be treated as an accident or health plan) merely because such arrangement provides for qualified distributions.
Qualified distributions
For purposes of this subsection, the term
qualified distribution
means any distribution to an individual
under the arrangement referred to in paragraph (1) with respect to any plan
year if—
such distribution is made after the last date on which requests for reimbursement under such arrangement for such plan year may be made and not later than the end of the 7th month following the close of such plan year, and
such distribution does not exceed the lesser of—
$500, or
the excess of—
the salary reduction contributions made under such arrangement for such plan year, over
the reimbursements for expenses incurred for medical care made under such arrangement for such plan year.
Tax treatment of qualified distributions
Qualified distributions shall be includible in the gross income of the employee in the taxable year in which distributed and shall be taken into account as wages or compensation under the applicable provisions of subtitle C when so distributed.
Coordination with qualified reservist distributions
A qualified reservist distribution (as defined in subsection (h)(2)) shall not be treated as a qualified distribution and shall not be taken into account in applying the limitation of paragraph (2)(B)(i).
.
Conforming amendment
Paragraph (1) of section 409A(d) of such Code is
amended by striking and
at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting ,
and
, and by adding at the end the following new subparagraph:
a health flexible spending arrangement to which subsection (h) or (k) of section 125 applies.
.
Effective Date
The amendments made by this section shall apply to plan years beginning after December 31, 2012.
June 5, 2012
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed