Sec. 20154. Change in election amount
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/bill/116/hr/6800/pcs/section-20154·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A plan or other arrangement that otherwise satisfies all applicable requirements of sections 106 and 125 of the Internal Revenue Code of 1986 (including any rules or regulations thereunder) shall not fail to be treated as a cafeteria plan or health flexible spending arrangement merely because such plan or arrangement allows an employee to make, with respect to the remaining portion of a period of coverage within the applicable period— an election modifying the amount of such employee's contributions to such a health flexible spending arrangement (without regard to any change in status), or an election modifying the amount of such employee's elective paid time off.
Any election as modified under paragraph
(1)shall not exceed the limitation applicable under section 125(i) for the taxable year. Paragraphs
(1)and
(2)of subsection
(a)shall each apply to only 1 election change described in such paragraph with respect to an employee (in addition to any other election changes during a period of coverage permitted under the plan or arrangement without regard to this section). For purposes of this section, the term applicable period means the period beginning on the date of the enactment of this Act and ending on December 31, 2020. Any term used in this section which is also used in section 106 or 125 of the Internal Revenue Code of 1986 or the rules or regulations thereunder shall have the same meaning as when used in such section or rules or regulations.