OPTIONS Act

This bill would change the federal tax code to let employers offer a "qualified benefit options plan." Under such a plan, current, former, and retired employees could choose how to divide employer contributions among tax-free benefits, such as retirement plan contributions, health reimbursement arrangements, health savings accounts, and educational assistance. Participants could not choose to take cash or other taxable benefits instead. Having this choice alone would not make the contributions count as taxable income, though rules limiting benefits for highly paid and key employees would apply. The changes would apply to tax years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• W. Gregory Steube Republican sponsor
• 1 cosponsors