OPTIONS Act allows employers to offer employees a choice among tax-favored employer contributions.

The OPTIONS Act amends the Internal Revenue Code to establish that employers may offer employees a choice among tax-favored employer contributions through a qualified benefit options plan. This plan allows participants to allocate employer contributions among qualified benefits, which include certain non-elective employer contributions, contributions to health reimbursement arrangements or health savings accounts, and amounts paid by an employer for educational assistance. Participants cannot elect to receive cash or any other taxable benefit instead of qualified benefits.

OPTIONS Act allows employers to offer employees a choice among tax-favored employer contributions.

The OPTIONS Act amends the Internal Revenue Code to establish that employers may offer employees a choice among tax-favored employer contributions through a qualified benefit options plan. This plan allows participants to allocate employer contributions among qualified benefits, which include certain non-elective employer contributions, contributions to health reimbursement arrangements or health savings accounts, and amounts paid by an employer for educational assistance. Participants cannot elect to receive cash or any other taxable benefit instead of qualified benefits.