Press Releases

Today, Representatives Suzan DelBene (WA-01) and Greg Steube (FL-17) introduced the Optimizing Participant Tax Incentives through Optional Noncash Selections (OPTIONS) Act, bipartisan legislation that would clarify existing gaps in the Internal Revenue Service's (IRS) rules governing employer contributions to employee benefit plans. 

In May 2024, the IRS allowed a single employer to implement a flexible benefits program allocating contributions to employee retirement accounts, Health Savings Accounts, Health Reimbursement Accounts, and educational assistance programs. While this was a positive step, the fact that it granted unique permission for one specific employer has created uncertainty for others interested in adopting a similar flexible benefit package for their employees. The OPTIONS Act resolves this problem, extending the flexible benefits model to all employers. 

“Workers want more flexibility in their financial planning, but employer contributions are mostly limited to retirement accounts currently. With many employees wanting to prioritize student loans and health care bills, this legislation would let them direct their employer contributions to these needs. This commonsense bipartisan bill would give workers more options while ensuring those focused on retirement can continue to save,” said DelBene.

“American workers deserve more freedom and true financial security when it comes to their benefits," said Steube. "Unfortunately, ongoing confusion and inconsistencies with IRS rules governing employer contributions to benefit plans have shortchanged millions of Americans of potential savings. That is why I am introducing the OPTIONS Act to ensure workers have more choices and better benefits at the workplace." 

“American workers don’t all face the same financial challenges, so their benefits shouldn’t be one-size-fits-all,” said American Retirement Association (ARA) CEO Brian Graff. “The OPTIONS Act is a smart, forward-looking solution that empowers employees to direct employer contributions where they need them most, whether that’s retirement savings, healthcare, or paying down student debt. ARA applauds Representatives Steube and DelBene for their bipartisan leadership on this important legislation, which strengthens financial security while preserving the integrity of our employer-sponsored system.”

Read the full bill text here.