To amend the Internal Revenue Code of 1986 to allow unused benefits under cafeteria plans and flexible spending arrangements to be distributed.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to prohibit a cafeteria plan from failing to be treated as a cafeteria plan or flexible spending or similar arrangement solely because under such plan or other arrangement any nontaxable benefit which is unused as of the close of a taxable year may be distributed to the participant.…