Sec. 3. Increase in dollar amount of election for dependent care flexible spending arrangements

156 words·~1 min read·/bill/116/hr/7562/ih/section-3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 125 of the Internal Revenue Code of 1986 is amended by redesignating subsections

(k)and

(l)as subsections

(l)and

(m)and inserting after subsection

(j)the following: For purposes of this section, if a benefit is provided under a cafeteria plan through employer contributions to a dependent care flexible spending arrangement, such benefit shall not be treated as a qualified benefit unless the cafeteria plan provides that an employee may not elect for any taxable year to have salary reduction contributions in excess of $10,000 made to such arrangement for each dependent under such arrangement. In the case that the employee is an individual who is not married as of the beginning of the taxable year for which the employee elects to participate in the arrangement, paragraph

(1)shall be applied by substituting $12,000 for $10,000 . . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.