H.R. 6313

Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2018

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IB

Union Calendar No. 661

115th CONGRESS

2d Session

H. R. 6313

[Report No. 115–853]

IN THE HOUSE OF REPRESENTATIVES

July 6, 2018

Mr. Stivers introduced the following bill; which was referred to the Committee on Ways and Means

July 19, 2018

Additional sponsors: Mr. Gonzalez of Texas, Mr. Collins of Georgia, Mrs. Walorski, Ms. Sinema, Mrs. Lesko, and Ms. Velázquez

July 19, 2018

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

For text of introduced bill, see copy of bill as introduced on July 6, 2018


A BILL

To amend the Internal Revenue Code of 1986 to allow the carryforward of health flexible spending arrangement account balances.


1.

Short title

This Act may be cited as the Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2018.

2.

Carryforward of health flexible spending arrangement account balances

(a)

In general

Section 106 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(h)

Carryforward of health flexible spending arrangement account balances

A plan shall not fail to be treated as a health flexible spending arrangement under this section or section 105 merely because such arrangement’s account balance (or any portion thereof) determined as of the end of any plan year may be carried forward to the succeeding plan year.

.

(b)

Coordination with limitation on salary reduction contributions

(1)

In general

Section 125(i) of such Code is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:

(2)

Coordination with carryforward of account balances

The dollar amount otherwise in effect under paragraph (1) for any plan year shall be reduced by the excess (if any) of—

(A)

the amount of any account balance which is carried forward to such plan year from the preceding plan year, over

(B)

$500.

.

(2)

Conforming amendments

Section 125(i) of such Code is amended by striking taxable year each place it appears in paragraphs (1) and (3) (as redesignated by paragraph (1) of this subsection) and inserting plan year.

(c)

Coordination with cafeteria plan limitation on deferred compensation

Section 125(d)(2) of such Code is amended by adding at the end the following new subparagraph:

(E)

Exception for health flexible spending arrangements

Subparagraph (A) shall not apply to a plan to the extent of amounts in a health flexible spending arrangement which may be carried forward as described in section 106(h).

.

(d)

Effective date

The amendment made by this section shall apply to plan years beginning after December 31, 2018.

July 19, 2018

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed