12 2 STA T . 1 63 6 PUBLIC LA W 11 0– 2 45—J U NE 1 7, 200 8SEC.1 1 4 . S P EC IALD ISP O SI T IO NRU LES F OR UNUSED B ENEFITS IN H EALTH FLE X IBLE SPENDIN G ARRANGE M ENTS OF INDI V IDUALS CALLED TO ACTIVE DUT Y . (a)INGE NE RAL.—Section125 ( r e l atin g to ca f eteria p lan s )is a m en d ed by redesignating s u bsections ( h ) and (i) as subsection (i) and ( j ) , respecti v ely, and by inserting after subsection (g) the follo w ing new subsection
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‘(h) S P E CI AL RU LE FO R U NU S E DB ENEFI T SIN H EALT HF LE X I B LE SPENDIN GA RRANGE M ENTS OF INDI V IDUALS C ALLED TO ACTIVE D UT Y .— ‘‘(1) IN GENERAL.—For purposes of this title, a plan or other arrangement shall not fail to be treated as a cafeteria plan or health fle x ible spending arrangement merely because such arrangement provides for q ualified reservist distributions. ‘‘(2) Q UALIFIED RESERVIST DISTRIBUTION.—For purposes of this subsection, the term ‘qualified reservist distribution ’ means, any distribution to an individual of all or a portion of the balance in the employee’s account under such arrange - ment if— ‘‘(A) such individual was (by reason of being a member of a reserve component (as defined in section 1 0 1 of title 37 , United States Code)) ordered or called to active duty for a period in excess of 17 9 days or for an indefinite period, and ‘‘(B) such distribution is made during the period begin- ning on the date of such order or call and ending on the last date that reimbursements could otherwise be made under such arrangement for the plan year which includes the date of such order or call.’’. (b) E FFECTIVE DATE.— T he amendment made by this section shall apply to distributions made after the date of the enactment of this Act. SEC. 11 5 . TECHNICAL CORRECTION RELATED TO EXCLUSION OF CER - TAIN PROPERTY TAX REBATES AND OTHER BENEFITS PRO- VIDED TO VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL RESPONDERS. (a) SOCIAL SECURITY TAXES.— (1) Section 3121(a) (relating to definition of wages) is amended by stri k ing ‘‘or’’ at the end of paragraph (21), by striking the period at the end of paragraph (22) and inserting ‘‘
or’’, and by inserting after paragraph (22) the following new paragraph: ‘‘(23) any benefit or payment which is excludable from the gross income of the employee under section 139B(b).’’. (2) Section 209(a) of the Social Security Act is amended by striking ‘‘or’’ at the end of paragraph (1 8 ), by striking the period at the end of paragraph (19) and inserting ‘‘; or’’, and by inserting after paragraph (19) the following new paragraph: ‘‘(20) Any benefit or payment which is excludable from the gross income of the employee under section 139B(b) of the Internal Revenue Code of 198 6 ).’’. (b) UNEMPLOYMENT TAXES.—Section 3306(b) (relating to defini- tion of wages) is amended by striking ‘‘or’’ at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting ‘‘; or’’, and by inserting after paragraph (19) the following new paragraph: 26USC3 3 0 6 .4 2USC40 9 . 26 USC 1 2 5note . 26 USC 125.
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