PPACT: Page 2388, Patient Protection and Affordable Care Act of 2009

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HR 3590 EAS/PP

SEC. 10902. INFLATION ADJUSTMENT OF LIMITATION ON

HEALTH FLEXIBLE SPENDING ARRANGE-

MENTS UNDER CAFETERIA PLANS.

(a) I

ENERAL

.--Subsection (i) of section 125 of the

Internal Revenue Code of 1986, as added by section 9005

of this Act, is amended to read as follows:

``(i) L

IMITATION ON

EALTH

LEXIBLE

PENDING

RRANGEMENTS

.--

``(1) I

N GENERAL

.--For purposes of this section,

if a benefit is provided under a cafeteria plan through

employer contributions to a health 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

$2,500 made to such arrangement.

``(2) A

DJUSTMENT FOR INFLATION

.--In the case

of any taxable year beginning after December 31,

2011, the dollar amount in paragraph (1) shall be in-

creased by an amount equal to--

``(A) such amount, multiplied by

``(B) the cost-of-living adjustment deter-

mined under section 1(f)(3) for the calendar year

in which such taxable year begins by sub-

stituting `calendar year 2010' for `calendar year

1992' in subparagraph (B) thereof.