II
115th CONGRESS
2d Session
S. 2802
IN THE SENATE OF THE UNITED STATES
May 8, 2018
Mr. Blunt introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide the opportunity for responsible health savings to all American families.
Short title
This Act may be cited as the Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2018
.
Expandable health flexible spending arrangements
Expansion of annual maximum
In general
Paragraph (1) of section 125(i) of the Internal Revenue Code of 1986 is amended—
by striking $2,500
and inserting $5,000, with an additional $500 per each additional employee dependent above two dependents
; and
by inserting at the end the following: An additional employee dependent may not be taken into account under the preceding sentence for any taxable year if such additional employee dependent has been taken into account by another person under such sentence for such taxable year.
.
Adjustment for inflation
Paragraph (2) of section 125(i) of the Internal Revenue Code of 1986 is amended—
by striking December 31, 2013
and inserting December 31, 2018
;
by striking the dollar amount
and inserting each of the dollar amounts
; and
in subparagraph (B), by striking calendar year 2012
and inserting calendar year 2017
.
Carryforward of unused benefits
Section 125(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Carryforward of unused benefits
In general
A plan or arrangement may permit a participant in a health flexible spending arrangement to elect to carry forward any aggregate unused balances in the participant’s accounts under such arrangement as of the close of any year to the succeeding year. Such carryforward shall be treated as having occurred within 30 days of the close of the year.
Limitation
The amount which a participant may elect to carry forward under subparagraph (A) from any year shall be any aggregate unused balances in the participant’s account at the close of any year.
Exclusion from gross income
No amount shall be included in gross income under this chapter by reason of any carryforward under this paragraph.
Coordination limits
The maximum amount which may be contributed to a health flexible spending arrangement for any year to which an unused amount is carried under this paragraph shall not be reduced by such unused amount.
.
Conforming amendment
Section 125(i) of the Internal Revenue Code of 1986 is amended by striking Limitation on flexible spending arrangements
in the heading and inserting Special rules for health flexible spending arrangements
.
Effective date
The amendments made by this section shall take effect on the date of the enactment of this Act.