Page:United States Statutes at Large Volume 124.djvu/880

 124 STAT. 854 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘(B) the amount of any salary reduction contributions to a flexible spending arrangement (within the meaning of section 125).’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2010. SEC. 9003. DISTRIBUTIONS FOR MEDICINE QUALIFIED ONLY IF FOR PRESCRIBED DRUG OR INSULIN. (a) HSAS.—Subparagraph (A) of section 223(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the fol- lowing: ‘‘Such term shall include an amount paid for medicine or a drug only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available with- out a prescription) or is insulin.’’. (b) ARCHER MSAS.—Subparagraph (A) of section 220(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following: ‘‘Such term shall include an amount paid for medicine or a drug only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.’’. (c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Section 106 of the Internal Rev- enue Code of 1986 is amended by adding at the end the following new subsection: ‘‘(f) REIMBURSEMENTS FOR MEDICINE RESTRICTED TO PRE- SCRIBED DRUGS AND INSULIN.—For purposes of this section and section 105, reimbursement for expenses incurred for a medicine or a drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescrip- tion) or is insulin.’’. (d) EFFECTIVE DATES.— (1) DISTRIBUTIONS FROM SAVINGS ACCOUNTS.—The amend- ments made by subsections (a) and (b) shall apply to amounts paid with respect to taxable years beginning after December 31, 2010. (2) REIMBURSEMENTS.—The amendment made by sub- section (c) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2010. SEC. 9004. INCREASE IN ADDITIONAL TAX ON DISTRIBUTIONS FROM HSAS AND ARCHER MSAS NOT USED FOR QUALIFIED MEDICAL EXPENSES. (a) HSAS.—Section 223(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking ‘‘10 percent’’ and inserting ‘‘20 percent’’. (b) ARCHER MSAS.—Section 220(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking ‘‘15 percent’’ and inserting ‘‘20 percent’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to distributions made after December 31, 2010. SEC. 9005. LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGE- MENTS 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, and 26 USC 125. 26 USC 220 note. 26 USC 106 note. 26 USC 220 note. 26 USC 106. 26 USC 220. 26 USC 223. 26 USC 6051 note.