; and (2) by adding at the end the following new subparagraph: (D) Qualifying individual For purposes of this paragraph, the term qualifying individual has the meaning given to such term under section 21(b)(1). . (b) Inflation adjustment Section 129(a)(2) of such Code is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2019, the dollar amounts in clauses (i) and (ii) of subparagraph (A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2018 for calendar year 1992 in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100. . (c) Conforming amendment Section 129(a)(2). (d) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2018. 3. Carryforward and limitation for dependent care flexible spending arrangement account balance (a) In general Section 125 of the Internal Revenue Code of 1986 is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively and by inserting after subsection (j) the following new subsection: (k) Rules for dependent care flexible spending arrangements (1) Carryforward of unused dependent care benefits For purposes of this title, a plan or other arrangement shall not fail to be treated as a cafeteria plan or dependent care flexible spending arrangement merely because such arrangement provides that an amount not exceeding the lesser of— (A) such arrangement’s account balance determined as of the end of any plan year, or (B) the limitation described in paragraph (2) for the succeeding plan year, may be carried forward to the succeeding plan year of such flexible spending