(a) In general.
Section 125(f)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Text this section adds to the law
(C) Exception for participants in CHOICE arrangement.
Subparagraph (A) shall not apply in the case of an employee participating in a custom health option and individual care expense arrangement (within the meaning of section 9815(b)(2)) offered by the employee’s employer.
(b) Effective date.
The amendment made by this section shall apply to taxable years beginning after December 31, 2025.