Section 1 Short title
This Act may be cited as the “Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2019”.
Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to provide the opportunity for responsible health savings to all American families.
Sec. 2 Expandable health flexible spending arrangements
Expansion of annual maximum—
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, 2020”,
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 2019”.
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:
“(3) Carryforward of unused benefits
“(A) 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.
“(B) 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.
“(C) Exclusion from gross income—No amount shall be included in gross income under this chapter by reason of any carryforward under this paragraph.
“(D) 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 health flexible spending arrangements” in the heading and inserting “Special rules for health flexible spending arrangements”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2019.