1. Special disposition rules for unused benefits in flexible spending arrangements of individuals in plan year 2020 (a) FSAs must allow distribution or rollover in 2020 For purposes of sections 106, 125, and 129 of the Internal Revenue Code of 1986, a flexible spending arrangement must allow a qualified 2020 distribution or rollover. (b) Taxes applied to certain distributions For purposes of sections 125(a) and 129(a) of such Code, such sections shall not apply to any benefit distributed from a flexible spending arrangement for a use other than the qualifying benefit for which such arrangement was established. (c) Special rule for disposition of unused benefits For purposes of such Code, a plan shall not fail to be treated as a cafeteria plan, health flexible spending arrangement, or dependent care flexible spending arrangement merely because such arrangement provides for a qualified 2020 distribution or rollover. (d) Qualified 2020 distribution or rollover For purposes of this section, the term qualified 2020 distribution or rollover means, for plan year 2020, any distribution at any time to an individual of all or a portion of the balance in the employee's account under such arrangement, or the rollover of the balance in the employee’s account to plan year 2021. (e) Application This section shall only apply to distributions or rollovers in plan year 2020. 2. Change in election amount (a) In general A plan or other arrangement that otherwise satisfies all applicable requirements of sections 106 and 125 of the Internal Revenue Code of 1986 (including any rules or regulations thereunder) shall not fail to be treated as a cafeteria plan or health flexible spending arrangement merely because such plan or arrangement allows an employee to make, with respect to the remaining portion of a period of coverage within the applicable period— (1) an election modifying the amount of such employee’s contributions to such a health flexible spending arrangement (without regard to any change in status), or (2) an election