; (B) by striking the dollar amount and inserting each of the dollar amounts ; and (C) in subparagraph (B), by striking calendar year 2012 and inserting calendar year 2017 . (b) Carryforward of unused benefits Section 125(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Carryforward of unused benefits (A) In general A plan or arrangement may permit a participant in a health flexible spending arrangement to elect to carry forward any aggregate unused balances in the participant’s accounts under such arrangement as of the close of any year to the succeeding year. Such carryforward shall be treated as having occurred within 30 days of the close of the year. (B) Limitation The amount which a participant may elect to carry forward under subparagraph (A) from any year shall be any aggregate unused balances in the participant’s account at the close of any year. (C) Exclusion from gross income No amount shall be included in gross income under this chapter by reason of any car­ry­for­ward under this paragraph. (D) Coordination limits The maximum amount which may be contributed to a health flexible spending arrangement for any year to which an unused amount is carried under this paragraph shall not be reduced by such unused amount. . (c) Conforming amendment Section 125(i) of the Internal Revenue Code of 1986 is amended by striking Limitation on flexible spending arrangements in the heading and inserting Special rules for health flexible spending arrangements . (d) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act.