LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS UNDER CAFETERIA PLANS.

SEC. 9005. LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS UNDER CAFETERIA PLANS.(a) In General.—Section 125 of the Internal Revenue Code of 1986 is amended—(1) by redesignating subsections (i) and (j) as subsections (j) and (k), respectively, and124 STAT. 855(2) by inserting after subsection (h) the following new subsection:“(i) Limitation on Health Flexible Spending Arrangements.—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.”.(b) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2010.