Participants in choice arrangement eligible for purchase of exchange insurance for purchase of cafeteria plan

(a) In general Section 125(f)(3) is amended by adding at the end the following new subparagraph: (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.