Responsible Additions and Increases To Sustain Employee Health Benefits Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 1860 To amend the Internal Revenue Code of 1986 to provide the opportunity for responsible health savings to all American families. IN THE HOUSE OF REPRESENTATIVES MARCH 11, 2021 Mr. STIVERS (for himself, Mr. VICENTE GONZALEZ of Texas, Mr. KELLY of Pennsylvania, Mrs. BEATTY, Mr. ALLEN, Mr. COHEN, Ms. NORTON, Mr. JOHNSON of Ohio, Mr. RODNEY DAVIS of Illinois, Mr. BALDERSON, Mr. GROTHMAN, Mr. FITZPATRICK, Mr. GOSAR, Mr. CHABOT, Mr. RUPPERS- BERGER, Mrs. WAGNER, Mr. BAIRD, Mr. EMMER, and Ms. MENG) intro- duced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide the opportunity for responsible health savings to all American families. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Responsible Additions 4 and Increases To Sustain Employee Health Benefits Act 5 of 2021’’. 6 VerDate Sep 11 2014 21:00 May 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1860.IH H1860 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 1860 IH SEC. 2. EXPANDABLE HEALTH FLEXIBLE SPENDING AR- 1 RANGEMENTS. 2 (a) EXPANSION OF ANNUAL MAXIMUM.— 3 (1) IN GENERAL.—Paragraph (1) of section 4 125(i) of the Internal Revenue Code of 1986 is 5 amended— 6 (A) by striking ‘‘$2,500’’ and inserting 7 ‘‘$5,000, with an additional $500 per each ad- 8 ditional employee dependent above two depend- 9 ents’’, and 10 (B) by inserting at the end the following: 11 ‘‘An additional employee dependent may not be 12 taken into account under the preceding sen- 13 tence for any taxable year if such additional 14 employee dependent has been taken into ac- 15 count by another person under such sentence 16 for such taxable year.’’. 17 (2) ADJUSTMENT FOR INFLATION.—Paragraph 18 (2) of section 125(i) of the Internal Revenue Code 19 of 1986 is amended— 20 (A) by striking ‘‘December 31, 2013’’ and 21 inserting ‘‘December 31, 2022’’, 22 (B) by striking ‘‘the dollar amount’’ and 23 inserting ‘‘each of the dollar amounts’’, and 24 VerDate Sep 11 2014 21:00 May 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1860.IH H1860 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 1860 IH (C) in subparagraph (B), by striking ‘‘cal- 1 endar year 2012’’ and inserting ‘‘calendar year 2 2021’’. 3 (b) CARRYFORWARD OF UNUSED BENEFITS.—Sec- 4 tion 125(i) of the Internal Revenue Code of 1986 is 5 amended by adding at the end the following new para- 6 graph: 7 ‘‘(3) CARRYFORWARD OF UNUSED BENEFITS.— 8 ‘‘(A) IN GENERAL.—A plan or arrange- 9 ment may permit a participant in a health flexi- 10 ble spending arrangement to elect to carry for- 11 ward any aggregate unused balances in the par- 12 ticipant’s accounts under such arrangement as 13 of the close of any year to the succeeding year. 14 Such carryforward shall be treated as having 15 occurred within 30 days of the close of the year. 16 ‘‘(B) LIMITATION.—The amount which a 17 participant may elect to carry forward under 18 subparagraph (A) from any year shall be any 19 aggregate unused balances in the participant’s 20 account at the close of any year. 21 ‘‘(C) EXCLUSION FROM GROSS INCOME.— 22 No amount shall be included in gross income 23 under this chapter by reason of any carryfor- 24 ward under this paragraph. 25 VerDate Sep 11 2014 21:00 May 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1860.IH H1860 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 1860 IH ‘‘(D) COORDINATION LIMITS.—The max- 1 imum amount which may be contributed to a 2 health flexible spending arrangement for any 3 year to which an unused amount is carried 4 under this paragraph shall not be reduced by 5 such unused amount.’’. 6 (c) CONFORMING AMENDMENT.—Section 125(i) of 7 the Internal Revenue Code of 1986 is amended by striking 8 ‘‘LIMITATION ON HEALTH FLEXIBLE SPENDING AR- 9 RANGEMENTS’’ in the heading and inserting ‘‘SPECIAL 10 RULES FOR HEALTH FLEXIBLE SPENDING ARRANGE- 11 MENTS’’. 12 (d) EFFECTIVE DATE.—The amendments made by 13 this section shall apply to taxable years beginning after 14 December 31, 2021. 15 Æ VerDate Sep 11 2014 21:00 May 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H1860.IH H1860 pamtmann on DSKBC07HB2PROD with BILLS